First Nations Australians are significant contributors to Australia's economy but access to finance and capital is limiting their economic empowerment and financial wellbeing.
These are the findings of the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs report on its inquiry into economic self-determination and opportunities for First Nations Australians.
First Nations businesses and organisations are reported to have a higher social return on investment than many businesses working in mainstream industries – for every dollar of revenue spent, First Nations enterprises create about $4.41 of economic and social value. First Nations businesses are 40 to 100 times more likely to employ First Nations people.
Supported by research from the University of Melbourne, the inquiry received evidence showing First Nations businesses contribute $16.1 billion in revenue each year, pay $4.2 billion in wages, and employ more than 116,000 people.
The inquiry also put a spotlight on the structural barriers and systemic disadvantages to economic growth that First Nations people face. Evidence includes reported barriers to accessing finance and capital, starting a business, scaling up a business, leveraging land for economic purposes, as well as a lack of institutional trust, negative risk stereotypes, lower accrued intergenerational wealth and commercial acumen.
The report calls for a fundamental reframing of the First Nations economic narrative - one that embraces broader economic and fiscal policies. 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. Financial institutions should remove impediments to responsible lending and capital flow to First Nations people.
The report makes 22 recommendations to the government including:
- 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.
- 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 Jana Stewart and Committee Chair, a Mutthi Mutthi and Wamba Wamba woman, said the inquiry showed the contribution of First Nations people to Australia's economy and local communities is significant, far reaching, and rapidly growing.
"Australia's First Peoples, my ancestors, have been successful traders, innovators, entrepreneurs, and knowledge holders for more than 65,000 years."
"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 future is bright with the right approach—one 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."
