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Strengthening the Indigenous Procurement Policy (IPP) through consultation and reform

The Indigenous Procurement Policy (IPP) has supported a high rate of growth for the First Nations business sector.

Since it began in 2015, more than $9 billion in Commonwealth contracts have been awarded to First Nations businesses.

This is a big impact, but there may be ways to improve opportunities for First Nations businesses.

It’s time to see if the policy can be more effective in how it supports First Nations businesses and ensure the benefits flow on as intended.

Creating opportunities through reform

We're asking for your views on a number of potential IPP reforms.

These will:

  • make the policy stronger and more ambitious
  • improve the policy’s integrity
  • provide more opportunities for First Nations businesses with a view to maximise skills transfer to get more First Nations workers into long-term skilled work.

This reform process is part of the government’s commitment under the Buy Australian Plan to support First Nations businesses to access Commonwealth procurement opportunities.

Have your say about the future of the Indigenous Procurement Policy

Changing what makes a business eligible under the IPP is the first step. This is something the First Nations business sector has wanted for a long time.

We’re considering changing the definition of a First Nations business from ‘50% First Nations owned’ to ‘51% First Nations owned, managed and controlled’.

This is a big step. Through this consultation, we’re asking businesses and other key stakeholders to tell us if they support this change and how it would impact them.

You’re invited to contribute and we’d like to hear from:

  • Businesses and organisations, particularly First Nations owned
  • First Nations business registries
  • First Nations chambers of commerce
  • community leaders
  • service providers
  • Commonwealth suppliers, unions and others. 

Consultations will focus on:

  • understanding what we need to change
  • the impacts the changes would have on the sector.

Your feedback will help the government:

  • decide on the changes to the IPP
  • make a smooth transition when implementing changes to the IPP.

A discussion paper outlines the reform process and possible options. It has some questions on the impacts of the options, but we also encourage you to put forward other ideas.

How to take part

Consultations close on 1 March 2024. There are several ways to have your say.

Stay in touch

Register your interest for email updates on the work to reform the IPP.