The value of Commonwealth contracts won by First Nations businesses has reached $10 billion, with growth across key sectors and emerging industries projected to only rise.
The milestone mark in the value of contracts awarded via the Commonwealth's Indigenous Procurement Policy since 2015 coincides with First Nations businesses becoming key deliver partners on government projects.
More than 71,000 contracts were given to 4000-plus Indigenous businesses in nearly 10 years, helping new enterprises and sectors develop and grow.
Their success had led to more economic opportunities across the sector, with the scope of work increasing, as well as employment and training opportunities.
Other flow-on benefits included an increased focus from employers on creating more inclusive and culturally safe environments for Indigenous workers.
The $10b milestone coincides with procurement of Indigenous businesses hitting record levels last financial year among some of the big miners and at state and territory level.
A recent report found the sector was contributing three times more to the economy than non-Indigenous businesses, while sustainable wealth-creation projects were expected as the renewable energy transition ramped up.
After missed opportunities during the mining boom and with more than 60 per cent of future clean energy projects on land and sea where First Nations people have legal rights and interests, procurement opportunities are also likely to skyrocket on Australia's road to net zero in 2050.
The First Nations business sector now contributed more than $16 billion to the Australian economy and employed more than 116,000 people, paying them upwards of $4b.
Dilin Duwa Centre for Indigenous Business Leadership director, Michelle Evans, recently told an Indigenous business leaders forum they were "smashing it out of the park".
"The Indigenous business sector is growing at the rate of 8.29 per cent year-on-year," she said.
"That's for over 10 years… in comparison to the non-Indigenous business sector, which grows at about three per cent each year."
She believed the sector would continue to thrive, and Indigenous businesses could eventually create intergenerational wealth for First Nations people.
"Our people are business owners, job creators, innovators and exporters, custodians and entrepreneurs," she said.
The Federal Government hopes recent consultation with the sector on strengthening the Indigenous Procurement Policy (IPP) would ensure support and benefits for Indigenous businesses also rose.
Federal Minister for Indigenous Australians, Malarndirri McCarthy, said Indigenous businesses were a powerful vehicle for economic empowerment and self-determination.
"Through business, First Nations people can provide for their families and contribute to the economic development and well-being of their communities," she said.
"The government is committed to ensuring the Indigenous Procurement Policy continues to create economic and employment opportunities for First Nations businesses and the people and communities they support."
Senator McCarthy said she was heartened by the sector's "entrepreneurial spirit".
"It is a testament to the resilience and strength of First Nations people and their desire to flourish and create their own destiny – on their own terms," she said.
"The government remains committed to fostering and nurturing these aspirations."
Gungganddji Aerospace was one Indigenous that had flourished due to the IPP.
Managing director Daniel Joinbee said Gungganddji had been engaged by several Commonwealth agencies, including Defence, Foreign Affairs and Trade and Infrastructure, to provide high-quality defence, aviation and space-based consulting.
Programs funded via the IPP included Gunggandji's 'Non-Traditional Pathways' initiative, pioneered in the Defence and aerospace industries to create career pathways for First Nations people in aerospace.
"It is built on the belief that non-traditional career pathways can spark generational change, by shifting the conversation and creating wealth and stability within families and for individuals, and create a brighter future for First Nations communities," he said.
Gungganddji's 'Raising Horizons' program provides hands-on experience and direct engagement with the aviation industry for First Nations students, offering a glimpse of what career opportunities lie ahead – and above – aiming to empower them, particularly girls, to pursue careers in aviation and address poor retention and academic success rates among Indigenous students.
In Western Australia, the state's Indigenous business sector has almost tripled in size since 2020, driven largely by sustained and increased spending by big miners.
Data by Business News showed total revenue of WA's Indigenous business sector had rocketed to $2.3b in 2023-24, almost 50 per cent more than the previous financial year (FY) and a galaxy from 2020's mark of $800 million.
The WA Government's Aboriginal Procurement Policy, modelled on the federal government's IPP, drove about $250m in contracts to Indigenous businesses in both the 2022 and 2023 financial years.
Growth from the miners was led by the WA's iron ore triad of Fortescue, Rio Tinto and BHP, while mid-tier miners also were rapidly increasing spending with First Nations organisations.
Despite criticism for its position on Native Title and royalty payments to Traditional Owners, Fortescue and founder Andrew Forrest have delivered on Indigenous procurement, awarding 29 contracts worth $713m in 2023-24.
The Pilbara's biggest iron ore miner, Rio Tinto also grew spending with Indigenous businesses, the $593m last FY a significant jump from the $223m it awarded in 2020.
BHP has also come to the party, with last financial year's record $503m spend coming after just $67m was awarded to Indigenous businesses in FY20.
Mineral Resources also increased its procurement of Indigenous businesses in 2023-24, awarding $96m in contracts, with that spend forecast to increase exponentially in coming years.
Supply Nation on Monday released its Legacy report, which examined how the organisation had helped grow the First Nations economy since it was established by the former Rudd government in 2009.
More than 5,000 Indigenous businesses are now verified with Supply Nation, which last financial year facilitated $4.1b worth of spend for them
Since 2009, Supply Nation has helped deliver more than $14.7 billion in procurement spend between its members and suppliers.
