The Albanese Labor Government has strengthened the ambition and eligibility requirements of the Indigenous Procurement Policy (IPP), to help ensure economic benefits are flowing to First Nations people as intended.
Under the updated eligibility criteria, businesses wanting to access Commonwealth contracts under the IPP will need to be:
- 51 per cent or more First Nations owned and controlled; or
- Registered with the Office of the Registrar of Indigenous Corporations.
There will be a transition period from 1 July 2026 to support businesses to understand the eligibility changes, review their arrangements and take the necessary steps to ensure they align with the new requirements.
The changes will help ensure First Nations people are empowered to run their businesses and exercise their rights as majority owners, supporting economic self-determination.
At the same time, the changes mark an important step in addressing practices such as black cladding.
From today, July 1, the target for the Commonwealth and portfolios to buy from First Nations businesses has increased to 3.25%.
The target will continue to increase by 0.25% each year until it reaches 4% by 2030.
Since 2015, the IPP has helped transform Commonwealth procurement, with more than 91,000 contracts worth over $14.2 billion awarded to more than 4,900 First Nations businesses.
For more information and updates visit the NIAA website.
Quotes attributable to Minister for Indigenous Australians, Senator Malarndirri McCarthy:
“Strengthening the Indigenous Procurement Policy is about ensuring First Nations people are not just participating, but genuinely leading and benefiting from the success of IPP contracts.
“By moving to a 51 per cent ownership and control requirement, we are backing First Nations entrepreneurs to exercise full authority over their businesses.
“This approach balances certainty with opportunity, ensuring the IPP continues to deliver real economic empowerment and lasting outcomes for First Nations businesses.”