Increased Indigenous procurement targets for the APS

Following the government’s announcement to strengthen the Indigenous Procurement Policy (IPP) in February 2025, the first of the changes will commence this month. 

From 1 July 2025, the target for Commonwealth procurement from First Nations businesses will increase to 3% in 2025-2026, with incremental increases of 0.25% each year to reach 4% by 2029-2030.

To meet these new targets, Commonwealth agencies will need to increase their efforts to buy from Indigenous businesses.  

The next round of changes will happen from 1 July 2026, when the IPP eligibility criteria will be strengthened to require First Nations businesses be at least 51% or more First Nations owned and controlled (or registered with the Office of Registrar of Indigenous Corporations) to access the IPP.

The NIAA will also:

• explore ways to increase transparency of suppliers’ performance against Indigenous participation targets contained in high value contracts (Mandatory Minimum Indigenous Participation Requirements).
• work with relevant regulators and support services to identify opportunities to improve reporting pathways for First Nations people to report black cladding

The NIAA will continue to update the policy as the reform elements are implemented. 

• Find more about the IPP on the Indigenous Procurement Policy page
• Download the Indigenous Procurement Policy resource
• If you have any queries regarding the IPP please email IndigenousProcurement@niaa.gov.au.