The purpose of the policy is to drive sustainable, long term employment opportunities for Indigenous people as Indigenous businesses are more likely to employ Indigenous people.
This change was recommended as part of the Forrest Review which was release last year. This could be a fantastic initiative to boost Indigenous businesses. However, it is important to ask who will qualify as an Indigenous supplier under this policy? How do we ensure that the benefits of this policy change will result in real benefits and jobs for Indigenous people?
Supply Nation is a federally funded body which certifies Indigenous businesses and the federal government plans to use Supply Nation to identify the suppliers who will be eligible for the government spending initiatives. Currently, to qualify as a Certified Indigenous Business applicants must meet the following six criteria:
- Ownership – at least 51 per cent ownership of the company by an Indigenous Australian(s).
- Management – the company is led / managed by a Principal Executive Officer who is an Indigenous Australian.
- Control – the key business decisions regarding the company’s finances, operations, personnel and strategy are made by an Indigenous Australian(s).
- For profit – the company is able to distribute its equity to members.
- Trading as a business - with a minimum annual revenue of $50,000.00 and a demonstrated recent history of trade (ideally, at least 6 months trade history).*
- Business is located in Australia
When you look to do business with an Indigenous business, make sure that the business is Certified Indigenous by Supply Nation to ensure you are engaging with a genuine Indigenous business. This will maximise the benefits to the Indigenous community.
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