Indigenous Business Australia (IBA) has joined forces with the University of Technology Sydney's Centre for Indigenous People and Work (CIPW) to launch a new First Nations-led research partnership aimed at calculating and analysing the pay gap between Indigenous and non-Indigenous Australians.
The project will measure income disparities across the labour market and is designed to inform national debate about economic equality, the Indigenous economy and reforms to employment and wage policy, IBA and CIPW say, with the findings to help build the evidence base needed for systemic change.
At the partnership's centre is the recognition that wages are a key driver of both the Indigenous economy and the broader national economy, supporting households, community wellbeing and productivity.
Professor Nareen Young, Associate Dean (Indigenous Leadership and Engagement) at UTS Business School and lead at CIPW, says the project is focused squarely on employment equity.
"We know that Indigenous wages matter — not just for individual workers, but for families, communities, and the economy as a whole," she said.
"By measuring the Indigenous pay gap, we can clearly show how fair pay translates into higher lifetime earnings, stronger superannuation outcomes, and greater intergenerational economic security for Aboriginal and Torres Strait Islander people."
The research will examine what the organisations describe as a demographic dividend — a growing and increasingly educated First Nations workforce — and the role that fair pay and secure work play in lifting participation and economic growth.
While Indigenous-owned and operated businesses remain an important and expanding part of the Indigenous economy, the majority of Aboriginal and Torres Strait Islander people participate economically as employees in mainstream industries and workplaces — doing so despite longstanding societal and market exclusion.
The partners argue that fair pay and stable employment conditions are therefore critical to closing income gaps and strengthening long-term prosperity and economic participation.
IBA Deputy Chief Executive Officer, Sean Armistead, said examining wage outcomes plays a key role alongside supporting business development.
"Supporting Indigenous entrepreneurship remains vital, and so is ensuring Indigenous people are fairly paid for their work across the wider labour market," he said.
"Because that is the largest single contribution that First Nations people make to the economy.
"This research aligns with IBA's Strategy Towards 2030 by strengthening the evidence base needed to expand economic opportunity, financial independence, and long-term prosperity for our communities."
The joint study is expected to be released this year and will draw on existing datasets and analysis from Jobs and Skills Australia and the Australian Bureau of Statistics to deliver detailed income insights.
