Applying Indigenous Procurement: Turning policy into practice
Under existing rules in Federal and state-based Indigenous procurement policies, a First Nations business or enterprise must be at least 50% or more owned by First Nations Australians, or registered with the Office of the Registrar for Indigenous Corporations (ORIC). To be eligible for the Indigenous Procurement Policy, joint ventures (JV) must be 50% First Nations owned and controlled, and have a plan to grow the First Nations business partner’s capability and it’s First Nations workforce.
The Australian government’s Indigenous Procurement Policy was recently reviewed and changed. From 1 July 2026, First Nations businesses must be 51% or more First Nations owned and controlled (or registered with ORIC) to access the IPP.
The government has also lifted Indigenous procurement targets from 2.5% of the total value of contracts to 3% from 1 July 2025. The targets will then rise annually until they reach 4% by 2030.
The Commonwealth funds Supply Nation to verify businesses are First Nations owned in line with Indigenous Procurement Policy eligibility criteria.
There are national and jurisdictional IPPs.
The Australian government's Indigenous Procurement Policy has a Mandatory Set Aside requiring First Nations businesses be given an opportunity to demonstrate value for money before a general approach to market. It also has Mandatory Minimum Indigenous Participation Requirements for First Nations employment and business participation targets.
Review the specifics of each jurisdiction's Indigenous Procurement Policy below.
Australian Capital Territory
The ACT's Aboriginal and Torres Strait Islander Procurement Policy (2019) targets 2% of the Government financial year’s addressable spend to be with First Nations enterprises. Proponents should seek quotes from relevant First Nations businesses and sub-contractors wherever possible.
New South Wales
New South Wales’ Aboriginal Procurement Policy (2021) includes first consideration be given to First Nations businesses, and minimum requirements for First Nations participation.
The government is targeting increases in the number of First Nations businesses awarded contracts, an increase in direct spend with First Nations businesses, and an increase in full time employment opportunities for First Nations peoples on NSW Government contracts.
Proponents must submit an ‘Aboriginal Participation Plan’ during the procurement process setting out how they plan to meet participation requirements including identifying and addressing upcoming procurement opportunities for First Nations participation. Proponents must then report quarterly against the Plan and requirements for any First Nations participation spend.
Northern Territory
The Northern Territory's Aboriginal Procurement Policy (2022) targets 5% of the total number of contracts to be awarded to Aboriginal Business Enterprises which must be at least 51% Aboriginal owned.
Proponents must support Aboriginal employment and business opportunities. Preferencing Aboriginal participation in tenders may consider the following:
- Training and development opportunities for Aboriginal Territorians
- Work performed by Aboriginal Territorians
- Aboriginal Business Enterprise involvement as subcontractors and supply chain.
Queensland
Queensland’s Indigenous Procurement Policy (2017) targets 3% of the value of government procurement contracts to be with First Nations businesses.
an Indigenous business is at least fifty per cent owned by Aboriginal peoples and Torres Strait Islander peoples.
When planning procurement, proponents should give consideration to repackaging or unbundling large projects in order to maximise the opportunity for First Nations businesses.
When including First Nations benefit considerations, a clear rationale should be articulated, setting out the benefits, any costs and including a value and risk management assessment and mitigation plan.
The local benefits test may assist in procuring from First Nations businesses where they employ a local workforce.
South Australia
South Australia has an Aboriginal Economic Participation Strategy (2017), embedded in the state's Industry Participation Policy which applies to all suppliers, contractors and supplier activity.
The Industry Participation weighting of tenders can be lifted so First Nations businesses, and businesses with high First Nations employment or subcontracting, are more likely to win tender contracts.
A South Australian Aboriginal business is a business operating in South Australia that is 50% or more owned by an Aboriginal resident of South Australia, or where the Aboriginal owner is a non-South Australian resident but the business provides economic benefit to South Australian Aboriginal people through ongoing employment in the State.
The Aboriginal Economic Participation Initiative leverages government procurement to generate jobs and strengthen the Aboriginal business sector to competitively engage in both government and private sector contracts.
Find a First Nations business | Read the Industry Participation Policy
Victoria
Victoria's Social Procurement Framework (2018) includes a government procurement target of 1% from small to medium enterprises to be from First Nations businesses to facilitate purchasing from and employment of Victorian Aboriginal people by suppliers to the Victorian Government.
In some cases, government can set targets for supplier expenditure with Victorian Aboriginal businesses and ask suppliers to demonstrate how they will meet such targets.
The Victorian Government defines an Aboriginal business as at least 50% Aboriginal and/or Torres Strait Islander-owned with its main business in Victoria.
Western Australia
Western Australia’s Aboriginal Procurement Policy (2023) requires agencies to award 4% of their total contracts to registered First Nations businesses and/or Aboriginal Community Controlled Organisations (ACCOs) each financial year.
In some cases, First Nations participation requirements apply to contracts, like where a contract will be delivered predominantly to First Nations people or targets the specific needs of First Nations people.
First Nations employment targets require suppliers to engage from 2-10% of the total number of the contract labour force with First Nations persons in each year of contract delivery.
In 2024, the Policy was reviewed with recommendations to update the Policy, effective 1 July 2025.