Economic prosperity, Closing the Gap headline quiet federal budget for First Nations Australians

Dechlan Brennan
Dechlan Brennan Published March 25, 2025 at 5.00pm (AWST)

First Nations communities across the country will receive $1.3 billion towards Closing the Gap and economic self-determination as part of the latest budget measures, announced on Tuesday night.

In the shadow of an election where shadow Indigenous Minister Jacinta Nampijinpa Price has threatened to take a razor to spending, the government has outlined their commitment to Closing the Gap, with a focus on economic sustainability and job creation, as well as health and women.

The Government will provide $506.4 million over five years from the last financial year under the National Agreement on Closing the Gap, with money partially being allocated from the National Indigenous Australians Agency's (NIAA) Indigenous Advancement Strategy, as well as the Department of Health and Aged Care.

The transition between the much maligned Liberal-era Community Development Program (CDP) and Labor's new remote employment service sees funding to the tune of $137.3 million as well as CDP funding for a further four months.

The funding is alongside the previously announced Northern Territory Remote Aboriginal Investment, valued at $842.6 million, in a partnership with the NT Government and Aboriginal Peak Organisations NT.

In a budget without any major announcements, in part because of previous policy commitments, the government has allocated $70.9 million over two years through Indigenous Business Australia's (IBA) Home Loan Capital Fund to allow people, particularly single carer families, to buy their own home.

Most of the funding allocated in the budget for the First Nations portfolio was previously announced by the government, mirroring many commitments across the board. Focusing on tax cuts and abolishing non-compete clauses, they pushed the improvement of the economy, inflation, and unemployment.

Cost of living policies, including the previously announced reduction in cost of 30 essential products, such as milk, vegetables, and nappies, in more than 76 remote stores in First Nations communities was also costed.

There has been a push from both the government and Indigenous businesses and some Traditional Owner groups for economic self-determination, with the Prime Minister using his speech at the Garma Festival last year to highlight the long-term desire for communities to build intergenerational wealth.

"We're providing $1.3 billion for Closing the Gap and economic self-determination for First Nations Australians," Treasurer Jim Chalmers said in his budget speech, "with investments in remote community services, opportunities for business, and support for home ownership".

Furthermore, the government has said they are strengthening the Indigenous Procurement Policy (IPP) with a new "place-based business mentoring and coaching program" to support First Nations businesswomen and entrepreneurs.

$3.4 million over three years has been committed to increase the participation rate of First Nations women in business, which will be co designed and delivered by First Nations businesses and organisations.

$23.9 million will be allocated over five years from 2024–25 to strengthen the Indigenous Procurement Policy (IPP), which the government says boost opportunities for First Nations businesses to grow and create jobs.

The government has also continued their funding for Indigenous healthcare and women, with culturally safe mental healthcare, the detection and management of rheumatic heart disease (RHD) and building a nutrition workforce across remote communities all funded in the budget.

$9.2 million over three years from 2025–26 will be delivered to improve detection, monitoring and management of acute rheumatic fever and RHD in remote communities.

After last year's Senate inquiry into missing and murdered Indigenous women and children, the government has reaffirmed their previously announced $21.8 million over two years for family, domestic and sexual violence services to First Nations women, children, and communities.

However, despite calls from the National Aboriginal and Torres Strait Islander Legal Services (NATSILS) for $1.15 billion in additional investment for Indigenous legal services to ensure equitable access to culturally safe and appropriate legal services, no extra funding has been forthcoming.

It comes as states and territories continue to increase Indigenous incarceration, with several jurisdictions implementing policies directly in contradiction to the Closing the Gap agreement.

More to come.

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National Indigenous Times

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