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The Advertiser
04-06-2025
- Business
- The Advertiser
Govt made $23.9m change to support Indigenous businesses without knowing if policy was effective
The Albanese government announced $23.9 million to improve the government purchasing of goods and services from Indigenous businesses without knowing if the policy was effective or not. A report from the Australian National Audit Office has found there was limited evidence about whether the Commonwealth Indigenous Procurement Policy (IPP) was improving the lives of Indigenous Australians, despite agencies spending tens of billions of dollars on contracts designed to support Indigenous economic empowerment. In February and as part of the March budget, Labor announced measures to "strengthen" the policy, however, as the report outlines, there is no evidence that the policy works. "The National Indigenous Australians Agency has not demonstrated whether the [mandatory minimum requirements] are improving Indigenous economic participation," the report notes. "Reforms to the Indigenous Procurement Policy were announced in February 2025 without a clear understanding of the policy's effectiveness." The IPP was first introduced in 2015 to encourage government agencies to purchase from Indigenous-owned businesses and organisations in order to improve outcomes for Indigenous people. As part of the policy, there are mandatory minimum requirements (MMRs) for contracts worth more than $7.5 million. The requirements include a minimum percentage of Indigenous employment on a contract, either 3 or 4 per cent, depending on the contract. While the policy has widespread support within the sector, there have been concerns raised that despite the amount of government spending on Indigenous procurement, that money does not always end up in Indigenous hands. A parliamentary inquiry in November 2024 said so called "black-cladding" was occurring, where non-Indigenous companies partnered with First Nations organisations, without the First Nations organisation having control or benefiting from the procurement. In response to this and other inquiries, in February 2025, Minister for Indigenous Australians Malarndirri McCarthy announced changes to "strengthen" the Indigenous Procurement Policy, including lifting the targets and changing the ownership rules to qualify as an Indigenous business. "These reforms, based on consultations with Indigenous and non-Indigenous businesses, Chambers of Commerce and various levels of government, will create even more opportunities for First Nations businesses," Senator McCarthy said at the time. This was followed up with a $23.9 million funding boost in the 2025 budget. In response to questions from this masthead, Senator McCarthy said the important policy supported the growth of Indigenous businesses. "We know that since the IPP started in 2015, over 80,000 contracts have been awarded, with a total value of over $11.4 billion (up from the $10 billion announced in October)." However, five years on from an initial audit of the program and increasing billions being spent under the policy, there was limited data to show the dollars were improving the lives of Indigenous Australians, the audit office found. The first audit, published in 2020, recommended the NIAA implement an evaluation strategy. This was developed but never implemented. The follow-up 2025 audit found that while entities were including the policy requirement at the start of contracts, there was incomplete reporting of how these requirements were fulfilled in practice and performance measures did not align with the policy's intent. "The [National Indigenous Australians Agency] public reporting on the IPP does not provide information on the MMRs' effectiveness. It is unclear if the IPP's objectives of stimulating Indigenous entrepreneurship, business and economic development, and providing Indigenous Australians with more opportunities to participate in the economy, are achieved." Of those contracts entered into since the policy came into effect, less than 20 per cent had a final compliance assessment at the end of the contract. Of those that did, over a quarter were found not to have met the target. Support for implementing the policy, including guidance documents for Indigenous businesses, remained in draft or were incomplete; in addition, agencies were incorrectly exempting themselves from the requirements. While observers have hailed the "success" of the program, given agencies were spending more under the policy, this did not mean the policy was achieving its intent of supporting Indigenous Australians. "The information [contract number and value] does not go to the effectiveness of the IPP in achieving its stated objective (which is to 'stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the economy')," the ANAO report found Senator McCarthy did not respond directly to the concerns raised in the report, but said the reforms would improve the policy and crack down on "black cladding". "The government's reforms strengthened eligibility criteria, requiring businesses to be 51 per cent First Nations owned and controlled (or to be registered as an Indigenous Corporation). They also lifted the Commonwealth's Indigenous procurement target and committed to working with regulators to better target and tackle 'black cladding'." The report made eight recommendations, all of which were agreed to by the NIAA and other agencies. The Albanese government announced $23.9 million to improve the government purchasing of goods and services from Indigenous businesses without knowing if the policy was effective or not. A report from the Australian National Audit Office has found there was limited evidence about whether the Commonwealth Indigenous Procurement Policy (IPP) was improving the lives of Indigenous Australians, despite agencies spending tens of billions of dollars on contracts designed to support Indigenous economic empowerment. In February and as part of the March budget, Labor announced measures to "strengthen" the policy, however, as the report outlines, there is no evidence that the policy works. "The National Indigenous Australians Agency has not demonstrated whether the [mandatory minimum requirements] are improving Indigenous economic participation," the report notes. "Reforms to the Indigenous Procurement Policy were announced in February 2025 without a clear understanding of the policy's effectiveness." The IPP was first introduced in 2015 to encourage government agencies to purchase from Indigenous-owned businesses and organisations in order to improve outcomes for Indigenous people. As part of the policy, there are mandatory minimum requirements (MMRs) for contracts worth more than $7.5 million. The requirements include a minimum percentage of Indigenous employment on a contract, either 3 or 4 per cent, depending on the contract. While the policy has widespread support within the sector, there have been concerns raised that despite the amount of government spending on Indigenous procurement, that money does not always end up in Indigenous hands. A parliamentary inquiry in November 2024 said so called "black-cladding" was occurring, where non-Indigenous companies partnered with First Nations organisations, without the First Nations organisation having control or benefiting from the procurement. In response to this and other inquiries, in February 2025, Minister for Indigenous Australians Malarndirri McCarthy announced changes to "strengthen" the Indigenous Procurement Policy, including lifting the targets and changing the ownership rules to qualify as an Indigenous business. "These reforms, based on consultations with Indigenous and non-Indigenous businesses, Chambers of Commerce and various levels of government, will create even more opportunities for First Nations businesses," Senator McCarthy said at the time. This was followed up with a $23.9 million funding boost in the 2025 budget. In response to questions from this masthead, Senator McCarthy said the important policy supported the growth of Indigenous businesses. "We know that since the IPP started in 2015, over 80,000 contracts have been awarded, with a total value of over $11.4 billion (up from the $10 billion announced in October)." However, five years on from an initial audit of the program and increasing billions being spent under the policy, there was limited data to show the dollars were improving the lives of Indigenous Australians, the audit office found. The first audit, published in 2020, recommended the NIAA implement an evaluation strategy. This was developed but never implemented. The follow-up 2025 audit found that while entities were including the policy requirement at the start of contracts, there was incomplete reporting of how these requirements were fulfilled in practice and performance measures did not align with the policy's intent. "The [National Indigenous Australians Agency] public reporting on the IPP does not provide information on the MMRs' effectiveness. It is unclear if the IPP's objectives of stimulating Indigenous entrepreneurship, business and economic development, and providing Indigenous Australians with more opportunities to participate in the economy, are achieved." Of those contracts entered into since the policy came into effect, less than 20 per cent had a final compliance assessment at the end of the contract. Of those that did, over a quarter were found not to have met the target. Support for implementing the policy, including guidance documents for Indigenous businesses, remained in draft or were incomplete; in addition, agencies were incorrectly exempting themselves from the requirements. While observers have hailed the "success" of the program, given agencies were spending more under the policy, this did not mean the policy was achieving its intent of supporting Indigenous Australians. "The information [contract number and value] does not go to the effectiveness of the IPP in achieving its stated objective (which is to 'stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the economy')," the ANAO report found Senator McCarthy did not respond directly to the concerns raised in the report, but said the reforms would improve the policy and crack down on "black cladding". "The government's reforms strengthened eligibility criteria, requiring businesses to be 51 per cent First Nations owned and controlled (or to be registered as an Indigenous Corporation). They also lifted the Commonwealth's Indigenous procurement target and committed to working with regulators to better target and tackle 'black cladding'." The report made eight recommendations, all of which were agreed to by the NIAA and other agencies. The Albanese government announced $23.9 million to improve the government purchasing of goods and services from Indigenous businesses without knowing if the policy was effective or not. A report from the Australian National Audit Office has found there was limited evidence about whether the Commonwealth Indigenous Procurement Policy (IPP) was improving the lives of Indigenous Australians, despite agencies spending tens of billions of dollars on contracts designed to support Indigenous economic empowerment. In February and as part of the March budget, Labor announced measures to "strengthen" the policy, however, as the report outlines, there is no evidence that the policy works. "The National Indigenous Australians Agency has not demonstrated whether the [mandatory minimum requirements] are improving Indigenous economic participation," the report notes. "Reforms to the Indigenous Procurement Policy were announced in February 2025 without a clear understanding of the policy's effectiveness." The IPP was first introduced in 2015 to encourage government agencies to purchase from Indigenous-owned businesses and organisations in order to improve outcomes for Indigenous people. As part of the policy, there are mandatory minimum requirements (MMRs) for contracts worth more than $7.5 million. The requirements include a minimum percentage of Indigenous employment on a contract, either 3 or 4 per cent, depending on the contract. While the policy has widespread support within the sector, there have been concerns raised that despite the amount of government spending on Indigenous procurement, that money does not always end up in Indigenous hands. A parliamentary inquiry in November 2024 said so called "black-cladding" was occurring, where non-Indigenous companies partnered with First Nations organisations, without the First Nations organisation having control or benefiting from the procurement. In response to this and other inquiries, in February 2025, Minister for Indigenous Australians Malarndirri McCarthy announced changes to "strengthen" the Indigenous Procurement Policy, including lifting the targets and changing the ownership rules to qualify as an Indigenous business. "These reforms, based on consultations with Indigenous and non-Indigenous businesses, Chambers of Commerce and various levels of government, will create even more opportunities for First Nations businesses," Senator McCarthy said at the time. This was followed up with a $23.9 million funding boost in the 2025 budget. In response to questions from this masthead, Senator McCarthy said the important policy supported the growth of Indigenous businesses. "We know that since the IPP started in 2015, over 80,000 contracts have been awarded, with a total value of over $11.4 billion (up from the $10 billion announced in October)." However, five years on from an initial audit of the program and increasing billions being spent under the policy, there was limited data to show the dollars were improving the lives of Indigenous Australians, the audit office found. The first audit, published in 2020, recommended the NIAA implement an evaluation strategy. This was developed but never implemented. The follow-up 2025 audit found that while entities were including the policy requirement at the start of contracts, there was incomplete reporting of how these requirements were fulfilled in practice and performance measures did not align with the policy's intent. "The [National Indigenous Australians Agency] public reporting on the IPP does not provide information on the MMRs' effectiveness. It is unclear if the IPP's objectives of stimulating Indigenous entrepreneurship, business and economic development, and providing Indigenous Australians with more opportunities to participate in the economy, are achieved." Of those contracts entered into since the policy came into effect, less than 20 per cent had a final compliance assessment at the end of the contract. Of those that did, over a quarter were found not to have met the target. Support for implementing the policy, including guidance documents for Indigenous businesses, remained in draft or were incomplete; in addition, agencies were incorrectly exempting themselves from the requirements. While observers have hailed the "success" of the program, given agencies were spending more under the policy, this did not mean the policy was achieving its intent of supporting Indigenous Australians. "The information [contract number and value] does not go to the effectiveness of the IPP in achieving its stated objective (which is to 'stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the economy')," the ANAO report found Senator McCarthy did not respond directly to the concerns raised in the report, but said the reforms would improve the policy and crack down on "black cladding". "The government's reforms strengthened eligibility criteria, requiring businesses to be 51 per cent First Nations owned and controlled (or to be registered as an Indigenous Corporation). They also lifted the Commonwealth's Indigenous procurement target and committed to working with regulators to better target and tackle 'black cladding'." The report made eight recommendations, all of which were agreed to by the NIAA and other agencies. The Albanese government announced $23.9 million to improve the government purchasing of goods and services from Indigenous businesses without knowing if the policy was effective or not. A report from the Australian National Audit Office has found there was limited evidence about whether the Commonwealth Indigenous Procurement Policy (IPP) was improving the lives of Indigenous Australians, despite agencies spending tens of billions of dollars on contracts designed to support Indigenous economic empowerment. In February and as part of the March budget, Labor announced measures to "strengthen" the policy, however, as the report outlines, there is no evidence that the policy works. "The National Indigenous Australians Agency has not demonstrated whether the [mandatory minimum requirements] are improving Indigenous economic participation," the report notes. "Reforms to the Indigenous Procurement Policy were announced in February 2025 without a clear understanding of the policy's effectiveness." The IPP was first introduced in 2015 to encourage government agencies to purchase from Indigenous-owned businesses and organisations in order to improve outcomes for Indigenous people. As part of the policy, there are mandatory minimum requirements (MMRs) for contracts worth more than $7.5 million. The requirements include a minimum percentage of Indigenous employment on a contract, either 3 or 4 per cent, depending on the contract. While the policy has widespread support within the sector, there have been concerns raised that despite the amount of government spending on Indigenous procurement, that money does not always end up in Indigenous hands. A parliamentary inquiry in November 2024 said so called "black-cladding" was occurring, where non-Indigenous companies partnered with First Nations organisations, without the First Nations organisation having control or benefiting from the procurement. In response to this and other inquiries, in February 2025, Minister for Indigenous Australians Malarndirri McCarthy announced changes to "strengthen" the Indigenous Procurement Policy, including lifting the targets and changing the ownership rules to qualify as an Indigenous business. "These reforms, based on consultations with Indigenous and non-Indigenous businesses, Chambers of Commerce and various levels of government, will create even more opportunities for First Nations businesses," Senator McCarthy said at the time. This was followed up with a $23.9 million funding boost in the 2025 budget. In response to questions from this masthead, Senator McCarthy said the important policy supported the growth of Indigenous businesses. "We know that since the IPP started in 2015, over 80,000 contracts have been awarded, with a total value of over $11.4 billion (up from the $10 billion announced in October)." However, five years on from an initial audit of the program and increasing billions being spent under the policy, there was limited data to show the dollars were improving the lives of Indigenous Australians, the audit office found. The first audit, published in 2020, recommended the NIAA implement an evaluation strategy. This was developed but never implemented. The follow-up 2025 audit found that while entities were including the policy requirement at the start of contracts, there was incomplete reporting of how these requirements were fulfilled in practice and performance measures did not align with the policy's intent. "The [National Indigenous Australians Agency] public reporting on the IPP does not provide information on the MMRs' effectiveness. It is unclear if the IPP's objectives of stimulating Indigenous entrepreneurship, business and economic development, and providing Indigenous Australians with more opportunities to participate in the economy, are achieved." Of those contracts entered into since the policy came into effect, less than 20 per cent had a final compliance assessment at the end of the contract. Of those that did, over a quarter were found not to have met the target. Support for implementing the policy, including guidance documents for Indigenous businesses, remained in draft or were incomplete; in addition, agencies were incorrectly exempting themselves from the requirements. While observers have hailed the "success" of the program, given agencies were spending more under the policy, this did not mean the policy was achieving its intent of supporting Indigenous Australians. "The information [contract number and value] does not go to the effectiveness of the IPP in achieving its stated objective (which is to 'stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the economy')," the ANAO report found Senator McCarthy did not respond directly to the concerns raised in the report, but said the reforms would improve the policy and crack down on "black cladding". "The government's reforms strengthened eligibility criteria, requiring businesses to be 51 per cent First Nations owned and controlled (or to be registered as an Indigenous Corporation). They also lifted the Commonwealth's Indigenous procurement target and committed to working with regulators to better target and tackle 'black cladding'." The report made eight recommendations, all of which were agreed to by the NIAA and other agencies.
The Guardian
09-04-2025
- Business
- The Guardian
Australian government gave $2.7m to Elon Musk's X for advertisements in billionaire's first year as owner
The Australian government spent nearly $3m of taxpayer dollars advertising on Twitter/X in the first year after the world's richest man, Elon Musk, took over the platform, despite warnings of brand reputation damage that caused the government to initially pause ads. Data obtained by Guardian Australia, after a protracted freedom of information battle with the federal finance department, revealed $2.7m was spent between November 2022 and November 2023. Musk finalised his purchase of the platform on 28 October 2022. The data covers all ad spending on government department campaigns including health advisories and messaging around budget initiatives. In 2022-2023 this included advertising around the voice referendum and vaccine advertisements, among others. Sign up for the Afternoon Update: Election 2025 email newsletter The spending comes despite the government pausing ad spend on what was then called Twitter on 29 September 2022, following reports of a number of brands' advertisements appearing next to inappropriate content on Twitter, a report from the Australian National Audit Office revealed last week. A spokesperson for the finance department said it was suspended 'to evaluate brand safety measures' and restored shortly after. 'Following further review, the government's master media agency that manages advertising placement advised that sufficient brand safety measures were in place and advertising could return to the platform on 5 October 2022 with the exception of placements on Twitter profiles,' the spokesperson said. The following year's data – accounting for the shift when Musk became a full-throated supporter of Donald Trump – is being withheld until January 2026. The department said in its decision that releasing the data now would weaken the government's ability to negotiate with media on advertising. Sources have told Guardian Australia the total ad spend for the year is similar to 2022-23. Axel Bruns, professor in the Digital Media Research Centre at Queensland University of Technology, said the spend could reflect the uncertainty the government had around whether the platform would continue to be popular under Musk's leadership. 'With hindsight, there now seems little value in government advertising on X – the platform is overrun with disinformation, abuse, hate speech and spam bots, and most sensible users will have left by now,' he said. 'This might not have been as clear at the time when this advertising was purchased, though.' Bruns said any continued government advertising on X is 'unlikely to make its desired impact on audiences' but could be seen to be soft diplomacy to win favour with the Trump administration, but said it would not be a 'useful investment' given the reputation damage to continue to advertise on X in its current form. The continued ad spend comes despite Musk describing the Albanese government as 'fascist' over its now-abandoned misinformation legislation, and engaging in several legal battles with the Australian online safety regulator over content moderation on X, one of which was heard in the administrative review tribunal last week. Musk has become inexorably entwined with Trump and subsequently the new US administration in the past few months. Prior to running the US government's department of government efficiency (Doge) tasked with slashing government programs and spending, Musk became Trump's biggest campaign donor in the 2024 presidential election, and invested millions in his failed attempt to have a conservative judge win the Wisconsin supreme court's election last week. Musk's personal popularity has tanked this year, as a result, with a recent poll finding more than half of Americans believed Musk and Doge were harming the US. The finance department, which collects data from every government agency on ad spending, does not typically break down spending on individual platforms. Total digital ad spending for 2022-2023 was $56.3m. Guardian Australia filed a freedom of information request with the finance department for data specifically on X spending last year, but was initially refused. After seeking a review of the decision by the Australian information commissioner, the finance department agreed to release the first year of data this week. X was contacted for comment.
