Indigenous Procurement Policy

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The Commonwealth Indigenous Procurement Policy (IPP) commenced on 1 July 2015 and places Indigenous businesses at the front and centre of the way the Government does business. Whether through direct contracts, or as part of the supply chain of some of Australia’s biggest companies, the policy will ensure that Indigenous businesses have the chance to compete and showcase the products they have to offer. A strong Indigenous business sector will help drive financial independence, and create wealth and opportunities for Indigenous Australians.

The department, through our Reconciliation Action Plan, committed to meeting or exceeding our annual IPP targets. The department worked with the Shared Services Centre (SSC) in 2015–16 to provide leadership and procurement services to increase engagement with Aboriginal and Torres Strait Islander businesses. 

The SSC introduced important procurement system changes to ensure accurate reporting of our success in procuring from Indigenous businesses.

Under the IPP, the Commonwealth aims to award three per cent of domestic contracts to Indigenous enterprises by 2020. This target is being progressively introduced, with an interim target of 0.5 per cent in 2015–16. The department exceeded our target in 2015–16, awarding 41 contracts (against a target of four) with a total value of $5.3 million (against a target of $0.37 million).

By purchasing goods and services from Indigenous businesses, the department is contributing to achieving real change for Indigenous Australians.