Tips for Indigenous business

Indigenous AffairsEconomic DevelopmentIndigenous Procurement Policy

Monday, 26 November 2018

Publication author(s):

Department of the Prime Minister and Cabinet

Publication abstract:

The IPP helps Indigenous businesses to grow by requiring Commonwealth buyers to meet certain obligations when purchasing goods and services.

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How does the IPP help Indigenous Businesses?

The IPP helps Indigenous businesses to grow by requiring Commonwealth buyers to meet certain obligations when purchasing goods and services. These include:

For contracts delivered in remote areas, or contracts valued between $80,000 and $200,000 to be wholly delivered in Australia, Commonwealth buyers must provide Indigenous businesses with the opportunity to demonstrate value for money before a general approach to market. This is known as a Mandatory Set Aside.
For high value procurements valued at $7.5 million or more in specified industry sectors that are wholly delivered in Australia, Commonwealth buyers must ensure Indigenous businesses or Indigenous workers participate in the delivery of the contract. These are known as Mandatory Minimum Requirements or MMR.

If a contract meets these criteria, Commonwealth buyers must contract (directly or indirectly) with an Indigenous business, but there are other circumstances in which a buyer can choose to procure from an Indigenous business.

Under the Commonwealth Procurement Rules, a Commonwealth buyer is permitted to purchase directly from a small and medium Indigenous business without having to approach the general market as long as the business can demonstrate value for money. The contract may be for any size or value.

This provides Indigenous businesses with a big advantage – they do not need to complete costly tender processes.

Supply Nation

In order to find an Indigenous business to supply the goods and services they need, Commonwealth buyers will search Supply Nation’s online business directory, Indigenous Business Direct (IBD). This will connect buyers with businesses that can demonstrate value for money.

If you are an Indigenous business looking to supply Commonwealth buyers, you should consider registering your business with Supply Nation. Registration is free. In addition to connecting your business with buyers through the IBD, Supply Nation hosts trade fairs throughout the year to raise the profile of Indigenous businesses with Commonwealth buyers.

Definition of an Indigenous business

An Indigenous business is any business that is 50 per cent or more Indigenous owned.

Getting started

Register with Supply Nation

You should consider registering your business with Supply Nation. This is one of the best steps Indigenous businesses can take to gain exposure to Commonwealth buyers. Registration is a free. The register of Indigenous businesses that Supply Nation maintains is regularly checked by Commonwealth government and non-government buyers. The Commonwealth and Supply Nation hold events throughout the year to raise the profile of Indigenous businesses with buyers.