The federal government has updated the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) with the aim of supporting greater investment in First Nations businesses and communities.
The legislative change, passed by the senate on Monday evening, will give Indigenous Business Australia (IBA) the ability to borrow and raise funds to pursue investment opportunities. It will allow IBA to pursue co-investment and partnership opportunities with government and private entities.
Minister for Indigenous Australians, Malarndirri McCarthy, said modernising the ATSI Act will "supercharge" IBA's capability to inject capital into "activities that promote greater economic empowerment and self-determination for First Nations Australians".
"It will allow IBA to partner with a range of government entities and private investors, amplifying the positive economic, social and cultural impact it will have on the lives of Aboriginal and Torres Strait Islander people," she said.
"The ability to participate in more investment opportunities and raise funds to advance the commercial and economic interests of First Nations people will support ongoing efforts to close the gap."
The federal government said the amendments to the ATSI Act have been informed by "extensive" consultation with IBA over several years, and will support more First Nations people to start, grow and sustain businesses, purchase homes, and invest in commercial ventures.
IBA Chair, Darren Godwell, a Kokoberren man from north Queensland, highlighted the importance of the change in furthering IBA's mission.
"We continually seek new pathways to grow our impact. This is particularly meaningful this year as we celebrate 50 years through the generations," he said.
"Our home ownership program commenced in 1975 and to date we've supported more than 22,000 families into home ownership – an achievement that empowers prosperity, wellbeing and intergenerational impact.
"Expansion for further investment and business opportunities, as well as our largest, long-standing program of home ownership, means more success for Aboriginal and Torres Strait Islander people.
"As demand for our services continues to grow, this amendment will help us to achieve our vision for Australia's First Nations people to achieve economic independence – a right we fully deserve."
Mr Godwell acknowledged the "incredible support" from Senator McCarthy, the Expert Panel (which included Mr Rick Allert AO, Ms Rosemary Addis, Dr Doug McTaggart, Ms Diane Smith-Gander AO, Professor Robynne Quiggin, Dr Helen Szoke AO, and Professor Marcia Langton AM), and the staff at IBA.
"The work that led to this legislative change has been underway for several years now with valuable input from our Expert Panel members, the Minister for Indigenous Australians, the Prime Minister, and the Indigenous community who recognise the impact this will have," he said.
"This is not the end goal but only the beginning. We look forward to the next steps in this process so we can provide increased access to capital, robust pathways to prosperity, and success through collaboration and partnerships."
Senator McCarthy and Treasurer Jim Chalmers said in a joint statement that the change "is about getting more money and more investment into more First Nations communities around the country".
The ministers noted that access to capital continues to be a significant barrier to First Nations economic development and empowerment, and, until now, IBA's ability to support First Nations people has been restricted.
The government said the reform will contribute to Closing the Gap Target 8, which focuses on strong economic participation, and forms part of "broader work" Treasury is undertaking to establish a First Nations Economic Partnership, to help increase employment and training opportunities, and expand access to finance and capital for First Nations businesses.