Commonwealth Indigenous Procurement Policy Strengthening the Indigenous Business Sector

Three parts of the policy 1.A target number of contracts that need to be awarded to Indigenous businesses. 2.A mandatory set-aside of contracts for Indigenous businesses to apply in certain situations. 3. Mandatory minimum requirements for Indigenous employment and Indigenous supplier use for specified Commonwealth contracts

Target for Commonwealth Purchases and Mandatory Set-Aside (MSA) 3 per cent of new domestic Commonwealth contracts will be awarded to Indigenous enterprises by MSA applies to all: remote procurements and new domestic procurements between $80,000 to $200,000 (GST inclusive). Commonwealth buyers must check Supply Nation’s Indigenous Business Directory.

Minimum Mandatory Requirements Minimum mandatory requirements apply to new contracts valued at $7.5 million in specified industry sectors. Indigenous participation is either: Contract- based – 4 per cent Indigenous employment and/or supplier OR Organisation-based – 3 per cent Indigenous employment and/or supplier use.

Accountability Accountability requirements include: Quarterly reporting to the Prime Minister and Minister for Indigenous Affairs is required. Annual reporting will be published on the Prime Minister and Cabinet’s website. A review at the end of first year. An evaluation at the end of third year.

Useful Links Indigenous Procurement Policy Commonwealth Procurement Rules Establishment and operation of panels and multi-use lists Supply Nation Indigenous Business Direct Indigenous Business Australia (IBA) For more information Questions about the new Indigenous Procurement Policy can be sent to