Today, the Albanese Labor Government has introduced legislation to expand the role and remit of Indigenous Business Australia (IBA), as part of the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024.
The Bill amends legislation to allow IBA to borrow and raise capital, boosting its ability to invest in First Nations businesses and communities.
We are improving access to capital because we know it is a significant barrier to First Nations economic development and empowerment.
This is about getting more money and more investment into more First Nations communities around the country.
It supercharges IBA’s ability to inject finance into activities that can promote greater economic empowerment, self-determination and better life outcomes for First Nations people.
It is part of the Albanese Government’s push for greater economic empowerment for First Nations people – and delivers on a key commitment made by the Prime Minister at the Garma Festival in August.
This change will allow IBA to partner with both private and government entities to deliver programs for First Nations ventures, deploying significantly greater amounts of finance and investment.
It will support more First Nations people to start, grow and sustain businesses, purchase homes, and invest in commercial ventures.
Current legislative restrictions on IBA borrowing and raising funds limit its ability to leverage capital for co-investment arrangements.
The Bill contains appropriate guardrails to allow IBA to pursue these co-investment and partnership opportunities in a safe way, determined by rules prescribed by the Minister for Finance.
Modernising IBA’s borrowing powers will provide the flexibility and certainty required to commercially structure investments that support and promote First Nations economic self-determination.
It will also provide entities with capital the ability to benefit from IBA’s established relationships with First Nations communities and businesses, to lead investment in projects that will support better life outcomes for First Nations people.
We want to make sure that First Nations businesses and communities are part of the growth and transformation taking place across our economy – by allowing IBA to partner with government and private entities.