Indigenous Business Australia has welcomed proposed legal changes which will support the organisation's "vision for a nation in which Aboriginal and Torres Strait Islander people are economically independent and an integral part of the national economy".
Earlier this week the federal government introduced in parliament amendments to IBA's enabling legislation, the Aboriginal and Torres Strait Islander Act 2005 (the Act), which are intended to enable IBA to expand its financial capability to meet the increasing demand of First Nations people for home ownership, business enterprise, and investment in sound commercial ventures for the success of their community.
On Wednesday, the IBA said their objective is to become a "key commercial enabler, intersecting social wellbeing growth of Aboriginal and Torres Strait Islander people and self-determination by facilitating increased access to capital, robust pathways to prosperity, and success" through collaboration and partnerships.
Indigenous Business Australia said the proposed amendment will support and drive their ability to "continue the legacy of nearly 50 years of outcomes for the community" through the Indigenous Home Ownership Program, which to date has provided more than 21,000 home loans.
IBA Chairperson Eddie Fry highlighted the need for legislative change in a recent speech on 'Activating Indigenous-led opportunities in Northern Australia'.
"Expanding the financial capability of IBA, along with the growing desire for Indigenous people to engage in commercial activities, is a perfect combination to increase Indigenous participation in the economy," the proud Dagoman-Wardaman man said.
The IBA said their investments have "a proven track record of success", and that the organisation has developed into a "sophisticated financial institution" with a range of products and services supporting a range of needs for their customers in homes and business opportunities.
"The current legislative constraint has acted as a barrier to IBA's growth and ability to offer a broader range of support across the country. IBA can achieve more without this constraint," the IBA said in a joint statement.
The organisation said the introduction of Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 will position them to raise capital and borrow funds, and to fulfil the growing demand for Indigenous home ownership, business and investments.
"Our legislated purpose and strategic remit sets out the requirement to advance the commercial and economic interests of Aboriginal and Torres Strait Islander people and communities by the accumulation and utilisation of a substantial capital and asset base for their benefit. Our consolidated total assets now exceed $2.3 billion—a remarkable increase from $1.7 billion just five years ago," the IBA said.
Acting IBA chief executive Leo Bator said the legislative change will allow IBA to financially collaborate with other agencies to deliver "even deeper meaningful impact" for Aboriginal and Torres Strait Islander people.
"The changes will lay the foundations for further growth as an organisation, and has been years in the making, thanks to the hard work of IBA's Executive team, the IBA Board and current Chair of IBA, Eddie Fry," Mr Bator said.
"We look forward to continuing our work towards closing the gap on housing, providing more access to business finance and support for entrepreneurs, and increasing investment opportunities for First Nations communities."
