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Indigenous Business Australia (IBA) is delighted to welcome the historic passing of the legislative amendment to the Aboriginal and Torres Strait Islander Act 2005 (Act) to enhance IBA’s ability to leverage capital, supporting more Aboriginal and Torres Strait Islander people in achieving their dreams of home ownership, business enterprise and community investment.
This amendment aligns with the Government’s indications that IBA should have an expanded remit and role in delivering economic independence for First Nations people in Australia.
Previously, Section 184 of the Act restricted IBA from borrowing or raising capital. The amendment removes this barrier, providing IBA with the flexibility to explore new opportunities, and expand the range of financial products it can offer to meet market needs.
A Kokoberren man from north Queensland and the IBA Chair, Darren Godwell, highlights the importance of this change in furthering IBA’s mission.
“We continually seek new pathways to grow our impact. This is particularly meaningful this year as we celebrate 50 years through the generations. Our home ownership program commenced in 1975 and to date we’ve supported more than 22,000 families into home ownership – an achievement that empowers prosperity, wellbeing and intergenerational impact.
“Expansion for further investment and business opportunities, as well as our largest, long-standing program of home ownership, means more success for Aboriginal and Torres Strait Islander people.
“As demand for our services continues to grow, this amendment will help us to achieve our vision for Australia’s First Nations people to achieve economic independence – a right we fully deserve.”
As the Treasurer of Australia, the Hon Dr Jim Chalmers PM, noted in November 2024, the amendment “is part of the Albanese Government’s push for greater economic empowerment for First Nations people – and delivers on a key commitment made by the Prime Minister at the Garma Festival (2024)."
The IBA Chair acknowledges the incredible support from multiple groups to get to where we are today, including the Minister for Indigenous Australians, Senator the Hon Malarndirri McCarthy, the Expert Panel (which included Mr Rick Allert AO, Ms Rosemary Addis, Dr Doug McTaggart, Ms Diane Smith-Gander AO, Professor Robynne Quiggin, Dr Helen Szoke AO, and Professor Marcia Langton AM), and our staff at IBA.
“The work that led to this legislative change has been underway for several years now with valuable input from our Expert Panel members, the Minister for Indigenous Australians, the Prime Minister, and the Indigenous community who recognise the impact this will have,” said Mr Godwell.
“This is not the end goal but only the beginning. We look forward to the next steps in this process so we can provide increased access to capital, robust pathways to prosperity, and success through collaboration and partnerships.”
The Minister for Indigenous Australians, Senator the Hon Malarndirri McCarthy, was integral in progressing this result. Minister McCarthy notes the reason this will benefit Aboriginal and Torres Strait Islander people.
“Modernising the ATSI Act will supercharge IBA’s capability to inject capital into activities that promote greater economic empowerment and self-determination for First Nations Australians,” said Minister McCarthy.
“The measure will provide IBA with the opportunity to partner with a range of Government entities and private investors, amplifying the positive economic, social and cultural impact it will have on the lives of First Nations people.
“The ability to participate in more investment opportunities and raise funds to advance the commercial and economic interests of First Nations people will enable IBA to deliver on Government priorities and support its agenda for Closing the gap.”
Media contact: Tara Toohill 02 9207 6362 or tara.toohill@iba.gov.au
PLEASE NOTE: Although the legislation successfully passed, the important next step involves establishing the Rules under the new legislation. The Rules will set the parameters within which IBA can borrow and raise money. The rules need to be agreed by both the Minister for Indigenous Australians and the Finance Minister.
