IBA CEO Kirsty Moore and Chair Eddie Fry spoke with Australian Institute of Company Directors on how IBA is working toward the economic empowerment of First Nations communities. The resulting article describes IBA's 'powerful activities' which has transformed the dream of home ownership into reality, for 21,000 owner-occupier Indigenous families and individuals.
See full article below, which appeared on the AICD website.
Home ownership. For many First Nations Australians, it’s a dream which will only ever remain out of reach and a remote fantasy. But for 21,000 owner-occupier Indigenous families and individuals, it’s an idea which has at last actually transformed into reality, due to powerful activities by federal agency Indigenous Business Australia (IBA).
Roughly, we are nearing 5,000 home loans nationally at this point in time,” IBA CEO Kirsty Moore GAICD told the AICD in a recent interview in Perth. “And we continue to have very, very strong demand.
“The Indigenous home ownership program is the longest running program in the Indigenous affairs portfolio and it's been around for almost 50 years.”
According to the 2021 census, only 41 per cent of First Nations people own their own homes, compared to 66 per cent of non-First Nations people. “So there's a gap,” says Moore. It's a real gap in home ownership. For as long as that gap exists, IBA will need to play a role in in providing that finance where the mainstream banks won't.
“The need for that finance isn't just the fact that our customers live in maybe regional and remote areas where banks do not lend… but it's also because they don't have the bank of Mum and Dad. They don't have that intergenerational asset to support them. And they don't necessarily have role models in their community to look at - people who've owned a property.”
IBA also finances First Nations businesses. These range from small businesses such as Kakadu Kitchen, a non-alcoholic drinks entity with a store in Humpty Doo, and Mack Construction NT, a design and construction service, through to bigger enterprises such as the Centre for Appropriate Technology in Alice Springs, Warialda Engineering and Welding based in NSW, and Wilpena Pound Resort in the Flinders Ranges in South Australia.
IBA has also invested in building a new cucumber farm in Geraldton, Western Australia, and greenhouses are currently being constructed, according to Moore. “It’s part of a native title settlement with the state of Western Australia and we have had some extensive investment into that. The intent is that it will become Australia's largest cucumber farm.”
IBA is working with First Nations organisations across Australia and has joined forces with Export Finance Australia to empower First Nations companies to build their capacity to enter international markets.
IBA has an investment pipeline manages a portfolio of co-investments with Indigenous organisations valued at over $500 million, including direct investments, managed funds and a real estate investment trust. According to the IBA 2023-2024 Corporate Plan, IBA currently has $2 billion in net assets, which it aims to grow to $2.5 billion by 2028.
IBA Chair Eddie Fry, a Dagoman-Wardaman man from the Katherine region in the Northern Territory, told the AICD that IBA has already doubled net assets from $1.15 billion in 2014 to around $2 billion now. “We have cleaned up a lot of non-performing assets and we also have a board that clearly understands the commercial marketplace,” he said.
“We got smarter at doing business. In 2017, we made a massive leap from about 450 home loans to about over 900 in that one year.”
Management culture has also changed both at board level and at the operational level and offices such as the ACT have been downsized. “I would suggest we've taken on a greater corporate and operational approach than we used to have.”
The future
Over the next five years, IBA will facilitate new investment opportunities and new partnership arrangements to increase wealth and assets. It has boosted this work through recent partnership activity with the Northern Australian Infrastructure Facility (NAIF), Housing Australia, and Export Finance Australia (EFA), and in strategic banking partnerships with Australian Unity and Bank Australia.
According to the 2021 national census, there are now nearly one million First Nations people in Australia. The population of Aboriginal and Torres Strait Islander people now sits at around 984,000.
However, high interest rates and high property prices are making home ownership a more difficult proposition for many First Nations people.
“I think a big challenge going forward is to see how IBA can exceed what market conditions are currently determining. In the previous two years, house prices have just skyrocketed. Therefore, that’s going to impact on the ability of our buyers to borrow,” says Fry.
Because first homebuyers are struggling to find properties to purchase, IBA launched in August a shared equity program, which combines a finance option with an IBA home loan. The borrowing capacity of customers is increased, so they do not need to buy smaller properties than they need. “They still borrow the same amount, but by IBA putting in an equity contribution, the customer can hopefully buy a more appropriate home in a better location, with proximity to amenity and family, community in particular,” says Moore.
She says the focus on regional areas is important. Over 60 per cent of the home loan book of IBA is in regional Australia, mostly Queensland and NSW, she says. About 10 per cent is in remote areas, mainly in the Northern Territory and Western Australia.
“That's where the IBA business investment activity comes in, because we believe that if we can create local economic development, that will create opportunities for people ultimately to take control of their own futures.
“We know that home ownership provides security. A roof over your head. We also know this concept of passing assets onto kids really resonates strongly with our customer base, who want to give their kids a bright future. So they want to own a home, and they want to pass on the home. They want those kids to know that they can lay their roots in that place.”
She says IBA is governed by federal legislation and is obliged to make sustainable investment decisions to ensure that when lending to customers, the risks of ultimate financial losses are minimised through good customer support and sensible lending decisions in the first place.
“It is the IBA support which is the bit that creates success,” says Moore. “So it's the support around readiness to enter into that financial commitment in the first place. And making sure that if somebody is going to buy a house, they really understand the obligations of home ownership, that they really understand what it will mean and how they're going to withstand certain pitfalls that might come – that they have financial literacy. We support them through the customer journey for the entire length of the loan.”
UK-born Moore became CEO of IBA in May 2021, after starting as IBA Head of Products and Markets in early 2018. Driven by a passion to help people who need support, she has lived experience of difficulty with home ownership and brings this understanding to her role.
“I think part of my motivation is the fact that I come from disadvantage myself. My family come from a social housing background in the UK and I understand about opportunity. So, for me, I really want to support a cohort of society that needs assistance. It’s really as simple as that.”
Role of the board
The IBA board is composed of majority First Nations members alongside non-Indigenous members – all with business expertise. “Our board understands our customer base, so they understand some of the challenges that sit in community, they understand some of the issues of intergenerational trauma and they understand the concept of a proper fair go,” says Moore.
“They don't want IBA to be purely giving handouts. They want IBA to be investing with people who are ready to actually have a bit of gumption and go forward and take control of their own economic future.”
The board is also heavily focussed on cyber security and in 2021 created an IT subcommittee. “This is a new thing that we put in place a couple years ago in response to the need to make sure technology starts at the board level.
It recognises that we do need to have modern day banking systems, and appropriate data protection in place,” she says.
The board has also driven and monitored a significant digital transformation to update IT and core business systems. “We went from having quite old-fashioned IT systems to being on the cusp of having a modern-day banking system that is used by mainstream financial services institutions. The board has supported the organisation to do that and played an active role in the oversight of that initiative.”
The board is very engaged on the subject of cyber security, inquisitive and keen to understand it, she says. “They're definitely not passive when it comes to technology and implications of cyber and customer protection in general.
“Remember that we are here not only to deal with very sensitive information pertaining to the most disadvantaged but there's also a reputational risk to the Commonwealth government, if we get it wrong.”
Has your home or business been impacted by the cyclone in Queensland?
If you have an IBA home loan or business finance product and have been impacted by this weather events, we want to reassure you and your family that IBA is here in times of need.
Customers impacted by the recent natural disasters can apply for an emergency natural disaster relief grant – $5,000 for IBA business finance customers and/or $2,000 for IBA home loan customers.
All eligible customers should have received a direct link via SMS or email with information about how to apply. Applications accepted until midnight 29 March 2024, or until funds are exhausted (whichever comes first).
Additional information and resource links are below:
Feeling fresh? So are Yamatji Enterprises Limited (YEL), 4 Ways Fresh Produce and IBA. The parties have formed a joint venture company to establish a cucumber farm in Geraldton, Western Australia, creating a legacy for traditional owners.
The company, Yamatji Fresh Produce Pty Ltd, will develop 400 greenhouses to grow cucumbers making it the largest grower in Australia. It will also consider growing other crops such as tomatoes, eggplants and capsicum to fill the national supply gap. The joint venture will provide job opportunities for the community – creating a lasting legacy for generations to come.
In 2022, Yamatji and IBA acquired two adjacent parcels of land in Geraldton WA. Construction of a horticultural facility began in 2023. The first 125 greenhouses are expected to be completed in 2024 and another 125 greenhouses will follow in 2025.
One of the major highlights of last fiscal year was achieving development approval. Navigating through the regulatory landscape was no small feat, but we secured the green light to move ahead with the project. This milestone has paved the way for us to turn our vision into reality, and we cannot wait to see the transformation of the land into a flourishing cucumber haven.
Another significant achievement was the completion of the fencing work around the block. Not only was the completion of the fencing work a significant milestone in our project’s development, but it also represented a crucial achievement in our commitment to First Nations procurement. It marked the first of many First Nations–led contracts we are expecting to secure and deliver.
In addition, groundwork officially commenced with the construction of the dam, which will be the lifeblood of the facility, providing a reliable and efficient irrigation system to support the growth of our cucumber crops. As we dug the foundations, we knew that we were digging the foundations of a brighter future for the Yamatji community. We also initiated the construction of other essential facilities, including the ablution block, an integral part of the working environment for our future employees.
With the first 125 greenhouses under construction, we can already visualise the thriving fields of cucumbers awaiting us in the upcoming harvest. Once built, the facility will be able to produce roughly 1,700 t of cucumbers per annum.
Has your home or business been impacted by recent severe storms and rainfall in Southern QLD?
If you have an IBA home loan or business finance product and have been impacted by rain or storm damage, we want to reassure you and your family that IBA is here in times of need.
Customers impacted by the recent natural disasters can apply for an emergency natural disaster relief grant – $5,000 for IBA business finance customers and/or $2,000 for IBA home loan customers.
All eligible customers should have received a direct link via SMS or email with information about how to apply. Applications accepted until midnight 15 March 2024 for the recent areas impacted, or until funds are exhausted (whichever comes first).
There are also applications still open for customers impacted in previous weather conditions around NSW and QLD. Please check the links below for applicable areas.
Additional information and resources:
Our last e-newsletter for 2023 is out now! You can read it online here.
It’s been a massive year for IBA and our customers and this final edition includes:
Our offices will be closed from COB Friday 22 December 2023 and reopen on Wednesday 3 January 2024. This is a time for us to recharge and spend time with our loved ones. We will be back with full energy and dedication to serve you in the new year. We hope you can enjoy this special time with your loved ones too!
To get our e-news delivered directly to your inbox every 3-4 months, simply subscribe to the newsletter here.
Has your home or business been impacted by the cyclone in QLD or severe weather or flooding in NSW?
If you have an IBA home loan or business finance product and have been impacted by these weather events, we want to reassure you and your family that IBA is here in times of need.
Customers impacted by the recent natural disasters can apply for an emergency natural disaster relief grant – $5,000 for IBA business finance customers and/or $2,000 for IBA home loan customers.
All eligible customers should have received a direct link via SMS or email with information about how to apply. Applications accepted until midnight 2 February 2024, or until funds are exhausted (whichever comes first).
While applications are open, please note that due to the holiday closure period, all eligible payments of the Natural Disaster Relief Grant will be delayed until after our offices reopen on Wednesday 3 January 2024.
Additional information and resource links are below:
Happy holidays from all of us at IBA! Our offices will be closed from COB Friday 22 December 2023 and reopen on Wednesday 3 January 2024.
This is a time for us to recharge and spend time with our loved ones. We will be back with full energy and dedication to serve you in the new year. Thank you for your understanding and support. We hope you can enjoy this special time with your loved ones!
Indigenous Business Australia (IBA) and National Australia Bank (NAB) have signed a Memorandum of Understanding (MoU) to collaborate on the design and development of an Indigenous Business Guarantee.
The guarantee will enable IBA and NAB to support more Indigenous business customers to access capital through access to NAB’s specialist bankers and commercial lending solutions.
The MoU also outlines how IBA and NAB will work together to provide Indigenous businesses with access to mainstream banking services and improve financial education and training for Indigenous business owners.
Noel Prakash, NAB Executive, Indigenous Business Banking, believes NAB’s business banking strength can support First Nations business growth.
“Businesses play an integral role in strengthening First Nations leadership and creating opportunities for communities to succeed. First Nations businesses are leading the charge by driving self-determination, and rapidly improving financial capability and inclusion.
“Working with First Nations people, we want to strengthen financial resilience, increase business and employment opportunities, and remove the barriers that have traditionally made it hard for First Nations customers and businesses to access financial services.
“NAB has set a new target to more than double our lending to First Nations businesses and community organisations to at least $1 billion over the next three years.”
IBA’s CEO Kirsty Moore leads the Commonwealth entity with a vision for a nation in which Aboriginal and Torres Strait Islander people are economically independent and an integral part of the economy.
“IBA exists to enhance and support the economic development opportunities of Aboriginal and Torres Strait Islander people across Australia. This collaboration with NAB serves to broaden IBA’s impact within the business sector.
“The growth of the First Nations business sector is incredibly exciting. With over 65,000 years of existence, they bring a wealth of knowledge and innovation as our original entrepreneurs.
“Aligned with the recent 2023 Indigenous Business Month theme, ‘To Gather, Together’, the collaboration with NAB works to bring resources together that benefit our First Nations businesses and we look forward to seeing this sector grow.”
IBA media contact: Tara Toohill 02 9207 6362 or tara.toohill@iba.gov.au
NAB media contact: NAB media team (03) 7025 5015 or nab.media@nab.com.au
Image includes: Faysal Fassi, Executive Director, Products & Services, IBA (front left); Andrew Irvine, Group Executive, Business & Private Banking, NAB (front right); Sean Armistead, Executive Director, People & External Relations, IBA (back left); and Noel Prakash, Executive, Indigenous Business Banking, NAB (back right). Image by Indigenous creative agency, Little Rocket.
About IBA: IBA is a commercially focused organisation. Economic independence for Aboriginal and Torres Strait Islander peoples is at the heart of what we do. Our programs assist Indigenous Australians to buy their own homes, be successful in business, and invest in commercial ventures that provide strong financial returns. IBA is established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). IBA resides in the portfolio of the Prime Minister and Cabinet and is accountable to the Australian Parliament through the Minister for Indigenous Australians, the Hon Linda Burney MP.
About NAB: National Australia Bank (NAB) is a financial services institution. We’re here to serve customers well and help our communities prosper. Today, we have more than 34,000 people serving eight million customers at more than 900 locations. As Australia’s largest business bank, our business experts work with small, medium and large businesses to help them grow. National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686
Indigenous Business Australia (IBA) and Northern Territory Indigenous Business Network (NTIBN) signed a Memorandum of Understanding (MoU) to collaborate and support Aboriginal and Torres Strait Islander businesses in the Northern Territory to achieve their economic goals and growth.
The MoU formalises the relationship between the two entities with key objectives including to enable Indigenous businesses in the NT to achieve their goals and aspirations, as well as providing access to capital and services.
The collaboration was made after the successful Aboriginal Economic Development Forum on Larrakia Country (Darwin). IBA supported this year’s forum through a Gold Sponsorship and co-hosted a Strong Women Strong Business breakfast.
NTIBN CEO Jerome Cubillo leads the peak body representing and advocating for Indigenous businesses in the Northern Territory.
“We are excited to partner with IBA. This announcement presents an opportunity to elevate the economic participation and social prosperity of Indigenous Territorians by encouraging, supporting, empowering, and building the capacity of our vibrant Indigenous business sector,” said Jerome.
“This partnership will enhance our ability to provide direct access to financial support that is largely unavailable in the mainstream banking and financial services sector.”
IBA CEO Kirsty Moore was on Larrakia Country this week meeting with NTIBN to discuss the importance of investing in the Northern Territory.
“IBA has been working with Northern Territory businesses and communities since we were established. This collaboration with NTIBN expands upon the strength of their established network and our broad ranges of services to further empower Aboriginal and Torres Strait Islander business growth in the area,” said Kirsty.
“Creating impact is about forming the right relationships and working with partners that know their communities and NTIBN is one of those partners. We look forward to further developing opportunities with them for Northern Territory businesses.”
[Interviews and images available upon request.]
Media contact: Tara Toohill 0427 011 938 or tara.toohill@iba.gov.au
About IBA
IBA is a commercially focused organisation. Economic independence for Aboriginal and Torres Strait Islander peoples is at the heart of what we do. Our programs assist Indigenous Australians to buy their own homes, be successful in business, and invest in commercial ventures that provide strong financial returns. IBA is established under the Aboriginal and Torres Strait Islander Act 2005 (ATSI Act) and is a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). IBA resides in the portfolio of the Prime Minister and Cabinet and is accountable to the Australian Parliament through the Minister for Indigenous Australians, the Hon Linda Burney MP.
About NTIBN
The NTIBN has been operating in the Northern Territory for over ten years as a consortium and peak body representing Northern Territory based Indigenous businesses. The NTIBN are a business growth and advocacy services provider, creating opportunity between businesses, strengthening business sector capacity, and representing on issues affecting First Nations businesses in the Northern Territory. The NTIBN is 100% Indigenous owned and its mission is to increase the economic participation and social prosperity of Indigenous Australians by encouraging, supporting, empowering, and building the capacity of Indigenous businesses.
The Hon. Senator Malarndirri McCarthy, Assistant Minister for Indigenous Australians and Indigenous Health officially opens IBA’s new Darwin office.
We officially opened IBA's new Darwin office yesterday, a strategic move towards enhanced customer and stakeholder engagement in the region. The new location ensures that our customers have easier access to us and our services. It reinforces our commitment to fostering stronger connections with the community, businesses and stakeholders.
Joining us to open the office was Senator The Hon. Malarndirri McCarthy, Assistant Minister for Indigenous Australians and Indigenous Health and IBA CEO Kirsty Moore.
“It’s not easy to talk about finances. It’s not easy talk about your hopes and dreams. So it’s great that IBA has a space where people can come in and do that,” says Senator McCarthy.
“I want to say with a lot of encouragement that the work IBA is doing will be critical in 2024 and will go a long way to assisting economic development and the ability for First Nations people to have wealth creation and financial self-sufficiency.”
IBA CEO Kirsty Moore says the new Darwin location reinforces IBA’s commitment to providing easier access to our services and engaging more deeply with the local community.
“We look forward to strengthening our connections and contributing to the growth of the Darwin business landscape,” said Kirsty.
