IBA MEDIA RELEASE: EMPOWERING PROSPERITY: INCREASED CAPITAL FOR INDIGENOUS ECONOMIC GROWTH AND OPPORTUNITY

• On 25 November 2024, the Australian Federal Government introduced the legislative amendment seeking to change Indigenous Business Australia’s governing legislation the Aboriginal and Torres Strait Islander Act 2005.
• The change is intended to enable IBA to expand its financial capability to meet the increasing demand of First Nations people for home ownership, business enterprise, and investment in sound commercial ventures for the success of their community.
• Our objective is for IBA to become a key commercial enabler, intersecting social wellbeing growth of Aboriginal and Torres Strait Islander people and self-determination by facilitating increased access to capital, robust pathways to prosperity, and success through collaboration and partnerships.

IBA welcomes the Federal Government’s support of our vision for a nation in which Aboriginal and Torres Strait Islander people are economically independent and an integral part of the national economy through the support and introduction to the House, of the legislative amendments to IBA’s enabling legislation, the Aboriginal and Torres Strait Islander Act 2005 (the Act).

The proposed amendment will support and drive our ability to continue the legacy of nearly 50 years of outcomes for the community through the Indigenous Home Ownership Program, which to date has provided more than 21,000 home loans.  IBA is gearing up financially to increase delivery to Aboriginal and Torres Strait Islander people, families, businesses and communities. Empowering prosperity, financial inclusion, and creating intergenerational impact.

Our investments have a proven track record of success.  We have matured to become a sophisticated financial institution with a range of products and services supporting a diverse range of needs for our customers in homes and business opportunities.  The current legislative constraint has acted as a barrier to IBA’s growth and ability to offer a broader range of support across the country.  IBA can achieve more without this constraint

We continually seek new pathways to grow our impact, and the first step in this evolution commences with the introduction of Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, which will amend the Act and position IBA to raise capital and borrow funds, and to fulfil the growing demand for Indigenous home ownership, business and investments.

Our legislated purpose and strategic remit sets out the requirement to advance the commercial and economic interests of Aboriginal and Torres Strait Islander people and communities by the accumulation and utilisation of a substantial capital and asset base for their benefit.  Our consolidated total assets now exceed $2.3 billion—a remarkable increase from $1.7 billion just five years ago.

IBA Chairperson Eddie Fry, a Dagoman man highlighted the need for legislative change in a recent speech on ‘Activating Indigenous-led opportunities in Northern Australia’.

“Expanding the financial capability of IBA, along with the growing desire for Indigenous people to engage in commercial activities, is a perfect combination to increase Indigenous participation in the economy.”

IBA has been actively working towards this legislation change to expand our capacity for several years and in the process, we received valuable input from our Expert Panel members, 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.

We greatly appreciate the very strong support IBA received for the legislative change from the Indigenous community following extensive consultations across the country.  IBA will continue extensive consultations as we partner with groups to progress their initiatives to transform Indigenous economic empowerment.

On behalf of the IBA Board and the IBA family, we are focused to deliver on Indigenous Australians’ aspirations in the immediate and forward years, which have long been voiced. Not just for the current generations, but for generations to come. They will be an integral part of the economic and social fabric of the whole nation.

Leo Bator, IBA’s Acting CEO, welcomed the development, “This legislative change will allow IBA to financially collaborate with other agencies to deliver even deeper meaningful impact for Aboriginal and Torres Strait Islander people.”

“The changes will lay the foundations for further growth as an organisation, and has been years in the making, thanks to the hard work of IBA’s Executive team, the IBA Board and current Chair of IBA, Eddie Fry.”

“We look forward to continuing our work towards closing the gap on housing, providing more access to business finance and support for entrepreneurs, and increasing investment opportunities for First Nations communities.”

Earlier this year at Garma 2024, Hon Anthony Albanese MP, Prime Minister of Australia, said:

“This very exciting success for change of legislation for IBA will result in:

• driving higher rates of Indigenous home ownership
• lifting investment in Indigenous businesses and employers all over the nation
• rewarding and incentivising wealth creation.”

On behalf of the Board, Mr Fry thanked the Minister for Indigenous Australians, Senator the Hon Malarndirri McCarthy, for her support in driving this change to allow IBA to strengthen its purpose for economic empowerment for First Nation’s people, families and communities.

Media contact: Katie Hoskins on 02 9207 6361 or Katie.Hoskins@iba.gov.au.