The Commonwealth's Indigenous Procurement Policy is on the verge of its most significant reform in a decade.

In a Senate Estimates hearing this week, officials confirmed the government will soon tender for a new verification provider, a change that could move decision-making closer to Indigenous business chambers and the communities they represent.

For ten years, Supply Nation has been the Commonwealth's preferred provider of business verification under the Indigenous Procurement Policy (IPP). Its database, Indigenous Business Direct, is the tool that government buyers and many of Australia's largest corporations use to identify and verify Indigenous suppliers. The system has brought visibility and consistency to Indigenous procurement, but it has also concentrated control in one place and left many legitimate businesses outside its reach.

Supply Nation receives approximately $3 million in federal government funding each year. That level of support has entrenched its position as the preferred provider, even though the IPP already recognises other legitimate pathways for verifying Indigenous ownership.

Senator Liddle calls for broader engagement

Under questioning from Shadow Minister for Indigenous Australians Senator Kerrynne Liddle, the National Indigenous Australians Agency (NIAA) revealed that there may be as many as 14,000 Indigenous businesses in the Australian economy, yet only around 5,300 are registered with Supply Nation.

"According to the Dilin Duwa Centre at the University of Melbourne, there might be 14,000 Indigenous businesses in the economy at the moment. There are about 5,300 that have registered on the Supply Nation database," officials said.

Senator Liddle responded: "Two-thirds of Indigenous businesses have no engagement with Supply Nation."

That figure exposes a significant gap between policy and practice. Most Indigenous businesses — particularly those in regional and remote areas — operate independently of the Commonwealth's preferred verification model.

"I met with three businesses in the Kimberley. None of them were engaged. Part of the reason was the regulatory approval that surrounds even participating. They were just getting on with doing their jobs," Senator Liddle told the hearing.

Her comments reflect a broader frustration within the Indigenous business community that the procurement system remains too centralised and not responsive to the diversity of business structures across the country.

Beyond a single provider

It is important to note that Supply Nation is not a monopoly. The IPP already recognises multiple pathways to verification. Indigenous businesses can demonstrate eligibility through Supply Nation, the Office of the Registrar of Indigenous Corporations (ORIC), or by providing evidence through Indigenous Chambers of Commerce or other recognised business lists.

What the system lacks is balance and support. While national registries serve a vital purpose, they cannot replace local knowledge and relationships. Indigenous Chambers of Commerce already play a recognised role under the IPP but often do so with minimal or no Commonwealth funding, formal partnerships or consistent recognition.

These chambers are Indigenous-led, community-based organisations that know their members and understand the realities of local economies. They help small businesses with compliance, networking and growth, and are well placed to identify genuine ownership and prevent black cladding through their deep community relationships.

A system ready for reform

The decision to open the verification function to tender presents a real opportunity to rebalance the system. Verification is not an abstract administrative exercise. It determines who is recognised, who can compete for contracts and who benefits from both government and corporate procurement spending.

The hearing also confirmed that the new First Nations Economic Partnership Agreement will explore ways to better support Indigenous businesses that do not meet current criteria, including those facing challenges accessing capital or entering joint ventures. That conversation must include the Indigenous Chambers that already perform this work on the ground.

Procurement beyond Canberra

Verification extends far beyond Commonwealth contracts. Most major companies in Australia have Indigenous procurement policies aligned with the IPP and rely on verified suppliers to meet their reconciliation and diversity targets. The same mechanisms that open doors to government work also determine access to private-sector supply chains.

That is why reform matters. If verification remains difficult for smaller or regional businesses to access, the benefits of Indigenous procurement will continue to concentrate in a limited segment of the economy.

The Indigenous business sector is expanding rapidly. ANZ and Deloitte project it could generate $50 billion annually within the next decade, growing at more than four times the pace of the broader economy. That growth potential demands a procurement system that is as dynamic and representative as the businesses it seeks to serve.

A moment to strengthen local leadership

The upcoming tender for the verification provider should not simply decide who manages a centralised database. It should determine how Australia defines integrity and inclusion in Indigenous procurement. The government now has the chance to invest in a model that includes Supply Nation and Indigenous Chambers as partners, each contributing distinct expertise.

Alternatively, it could support a national coalition of Indigenous Business Chambers to coordinate a unified Indigenous business directory; one that reaches deeply into local communities, built on on-the-ground knowledge, relationships and, most importantly, Indigenous control and ownership.

Resourcing Indigenous Chambers to build verification capacity would bring the system closer to the people and enterprises it represents. It would also align policy with the community values of self-determination, accountability and cultural knowledge.

A stronger, community-connected verification system would not only protect integrity but also unlock new economic potential. Backing Indigenous Chambers and community-based organisations would create the infrastructure needed to support the next wave of Indigenous enterprise growth.

Reece Harley, Managing Director, Indigenous Business Review