While First Nations people and businesses are significant contributors to the national economy, restricted access to finance and capital is limiting their growth and financial wellbeing, a new report has found.

Tuesday's report by the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs on the economic self-determination and opportunities for First Nations Australians, reinforced findings in a report by the Australian National University and Indigenous Business Australia released this month.

The committee, supported by research from the University of Melbourne, found First Nations businesses had a higher social return on investment than most other organisations in mainstream industries.

For every dollar of revenue spent, First Nations enterprises created approximately $4.41 of economic and social value.

Indigenous businesses were also 40 to 100 times more likely to employ First Nations people.

First Nations businesses contributed $16.1 billion in revenue annually, paid $4.2b in wages and employed more than 116,000 people.

The inquiry highlighted ongoing structural roadblocks and systemic disadvantages to Indigenous economic prosperity, with access to finance and capital a major impediment.

Other evidence pointed to barriers to starting a business, scaling up, and leveraging land for economic purposes, as well as a lack of institutional trust, negative-risk stereotypes, lower accrued intergenerational wealth, and commercial acumen.

Committee chair, Mutthi Mutthi and Wamba Wamba woman Senator Jana Stewart, said the inquiry confirmed First Nations contribution to Australia's economy and local communities was significant, expansive and growing rapidly.

"Australia's First Peoples - my ancestors - have been successful traders, innovators, entrepreneurs and knowledge holders for more than 65,000 years," she said on Tuesday.

"Unlocking greater growth of Australia's economy and transforming First Peoples to long-term generators of wealth and equity requires change from all levels of government, financial institutions, and investors."

The report urged a fundamental strategic transformation of broader economic and fiscal policies that increased First Nations economic empowerment, and financial institutions to remove barriers to responsible lending and capital flow to Indigenous people.

"All levels of government, financial institutions and investors must strengthen existing – and develop new – instruments to enhance First Nations people's access to finance and capital," the report said.

Some of the report's 22 recommendations to the government included: strengthening existing, and developing new, instruments to enhance and fast-track First Nations peoples' access to finance and capital; capturing longitudinal First Nations economic and business data to support policy design and improve the institutional trust of First Nations enterprises; strengthening First Nations cultural and intellectual property laws to deliver significant commercial opportunities; considering capacity and capability support for First Nations communities to enable the growth of emerging industries and Australia's economy; ensuring resourcing for Prescribed Bodies Corporates in the Native Title Act 1993 is sufficient to enable delivery of their full legislated potential; considering a target for First Nations project ownership and equity in clean energy; and, on completion of the Australian Law Reform Commission Future Acts Regime Review, considering whether a full review of Native Title Act 1993 (Cth) is required to deliver economic opportunities on the Indigenous estate.

Senator Stewart said expansive, unique strategies would help create Indigenous intergenerational wealth.

"We need an approach that embraces broader economic and fiscal policies, reshapes the public narrative, engages a strengths-based framework, stimulates investment and trade, and works in genuine partnership," she said.

Her comments followed the federal government introducing new legislation on Tuesday to expand the role and remit of IBA as part of the Future Made in Australia Bill 2024.

Labor's policy pivot followed this month's detailed IBA report by the IBA that, while lauding the increased economic contribution (more than 50 per cent) from the Indigenous business sector between 2016-2021, highlighted concerning policy shortfalls to its expansion, despite First Nations business growth outpacing non-Indigenous entities the past decade.

The research by IBA and ANU experts showed the Indigenous business sector's rapid expansion – more than 50 per cent growth in five years – was hampered by little capacity-building support, with start-ups and developed businesses challenged by access to suitable funding as demand grew.

For most of the four per cent of 'large' First Nations businesses (those with more than 20 employees), accessing capital between $50m-$100m was unavailable, either through IBA funding or other institutions.

The report by the Inquiry into economic self-determination and opportunities for First Nations Australians is available online.