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Indigenous Business Australia’s (IBA’s) submission to the Treasurer’s Economic Reform Roundtable reveals how the First Nations ‘demographic dividend’ can boost Australia’s productivity by increasing labour force participation and enhancing innovation.
The submission provides data and modelling centred around three drivers of economic prosperity – Population, Participation and Productivity. The submission reveals that when Aboriginal and Torres Strait Islander people are included in economic decision-making and have access to critical levers, their contributions can boost Australia’s economic prospects.
IBA Chair, Mr Darren Godwell MHK FAIIA, released the submission stating, “The case couldn’t be stronger for recognising Aboriginal and Torres Strait Islander people as a driver of Australia’s future prosperity.”
“Aboriginal and Torres Strait Islander people could make up between 4-7% of the Australian population in 20 years.
“The proportion of First Nations people within the prime working ages of 20-54 years could increase by 57% over that time.
“First Nations people with a tertiary qualification have not just closed the employment gap, their employment rates are higher than non-Indigenous tertiary qualified people.
“The growth in education could mean First Nations people add over $53 billion extra to the Australian economy over 20 years. And those gains will compound over the next few decades.”
While the First Nations participation rate remained the same between 2016 and 2021, the proportion of working age employed Aboriginal and Torres Strait Islander people increased from 47% to 50%.
“In contrast to the rest of the country, which is rapidly ageing, the youthful First Nations population will provide a growing source of economic vitality. Indeed, the number of First Nations tertiary-qualified graduates in employment could increase to over 87,000 in a decade,” Mr Godwell notes.
“Those workers, entrepreneurs and leaders will provide new energy, and draw on ancient knowledge to create cultural renewal, economic participation and Indigenous-led innovation.
“And with Aboriginal and Torres Strait Islander people having an interest or ownership stake in over 50% of Australia’s landmass – over 80% in the north – First Nations people must have a seat at the economic table.”
FIRST NATIONS TRADITIONAL KNOWLEDGE: AN INNOVATION REVOLUTION
The submission reveals how the greatest benefits for Australia will come from First Nations people using traditional knowledge, systems and frameworks to drive the next stage of Australian innovation.
Aboriginal and Torres Strait Islander traditional knowledge provides place-based insights about how to live in partnership with Country, to ensure it continues to provide – not just for this generation – but for at least seven generations ahead.
“Ancient First Nations frameworks for thinking about the world offer new ways for non-First Nations people to consider our activities, particularly through a sustainability lens that focuses on the role of maintaining and Caring for Country,” said Mr Godwell.
REFORMS ARE NEEDED
IBA’s submission calls for three policy reforms that can shape the direction of Australia’s productivity and sustainability story in a manner that is consistent with the task as put by the Treasurer:
Mr Godwell said, “First Nations leaders and their responsibilities as Lore Men and Lore Women are in the best position to determine how to successfully unlock greater productivity potential within the Indigenous estate.
“But that requires greater respect to be accorded to them, their position and their knowledge. Only through their guidance can we find ways forward to shape the nature and terms of economic activity on Country.
“Doing so would promote investment certainty, boost economic investment decisions, reduce the time drag on development pipelines, reduce development friction, and advance the national interest.”
HOW IBA WILL HELP
Every year, IBA is supplying hundreds of millions of dollars to Aboriginal and Torres Strait Islander people to meet their aspirations and contribute to the Australian economy.
“IBA has a proud history of providing inclusive, equitable, and fair access to capital and finance.”
Mr Godwell noted the latest 2024-25 performance was pleasing. “I’m glad to say that IBA supplied $291.6 million to 583 Aboriginal and Torres Strait Islander families to get into home ownership. That’s over 1,300 more First Nations people in a home that provides greater safety, security and builds intergenerational wealth.
“Over the last 50 years, IBA’s home ownership program has supported over 22,000 First Nations families buy their own home.
“IBA also issued $77.2 million in finance to 172 Indigenous businesses who are invigorating the Australian economy through their innovative ideas and creating employment, particularly for Aboriginal and Torres Strait Islander people. In addition, 185 Indigenous entrepreneurs received business support to build their capability and 866 budding businesspeople attended our business workshops.
“The number of Indigenous business owners reached an estimated 29,200 in 2021. IBA is proud of its legacy of supporting over half the growth in the Indigenous business sector over the last few years.”
The Government successfully passed IBA’s new legislative powers in late 2024, allowing IBA to secure more capital, boosting more First Nations communities through our supported finance model.
Mr Godwell said, “We welcomed the historic amendments to IBA’s enabling legislation – the Aboriginal and Torres Strait Islander Act. The change enhances our ability to leverage capital and support more Aboriginal and Torres Strait Islander in realising their dreams and aspirations. By scaling up capabilities and investments, IBA will be ready to meet rising demand and drive lasting economic progress.
“It’s an exciting time to be in the business of First Nations economic development. IBA is at the right place at the right time to make a real difference.”
Media contact: Tara Toohill 0427 011 938 or tara.toohill@iba.gov.au
