Strengthening government procurement policies

Strengthening government procurement policies to maximise Indigenous employment

As major purchasers of goods and services, Commonwealth, state and territory governments are in a position to increase Indigenous economic participation and employment by introducing or strengthening Indigenous employment requirements in government procurement policies. For this reason, all governments party to the now expired National Partnership Agreement on Indigenous Economic Participation(the ‘Agreement’) have committed to strengthening their procurement policies to maximise Indigenous employment.

As part of this initiative, the Commonwealth established an advisory service to support agencies (including state and territory government agencies) to implement their procurement requirements regarding Indigenous employment.

In addition to strengthening government procurement policies to maximise Indigenous employment, the Commonwealth explored options to assist the expansion of Indigenous business opportunities through support for an Indigenous supplier network. The Australian Government supports Supply Nation as part of its contribution to increasing opportunities for Indigenous businesses. Supply Nation provides an opportunity for certified, majority Indigenous owned, controlled and managed businesses to contract directly with corporate and government buyers of goods and services.

View the Indigenous Opportunities Policy.

The Indigenous Opportunities Policy (IOP) aims to maximise Aboriginal and Torres Strait Islander employment opportunities and the engagement of Indigenous businesses through Australian Government procurement processes.

The Indigenous Opportunities Policy (IOP) requires major suppliers to the Australian Government to demonstrate their commitment to Indigenous employment including the use of Indigenous business suppliers.

Key features of the policy include:

  • it applies to Australian Government procurement processes worth more than $5 million (or $6 million for construction) that involves activity in regions with a significant Indigenous population.
  • suppliers tendering for projects above the monetary threshold will be required to have a Department of Education, Employment and Workplace Relations approved Indigenous Training, Employment and Supplier Plan.