How does buying from Indigenous businesses benefit my business?

An Indigenous Procurement Policies Overview

Both state and federal governments have incorporated buying goods and services from Indigenous businesses into their procurement frameworks for tendering. Some governments have incorporated Indigenous Procurement into their social procurement targets. These procurement frameworks can now hold a weighting in tender applications that can potentially decide a winning contract. This will impact not only providers to government, but also suppliers to these providers as they themselves seek suppliers who can boost spend on Indigenous procurement into the supply chain to meet tender targets. This makes procurement from Indigenous and Torres Strait Islander businesses an advantage to your business where you are supplying to government and corporate buyers.


1. Indigenous Procurement Policy (IPP)

Introduced in 2015 by the Minister for Indigenous Affairs and Minister for Finance, the IPP was a federal initiative to stimulate growth in the Indigenous Business sector. The IPP’s intent is to empower Aboriginal Business owners, who are 100 times more likely to hire other Indigenous People, 56% more likely to provide pro-bono advice and 54% more likely to sponsor local community sport teams.

The policy has three key components:

1. A target for purchasing from Indigenous enterprises

2. A mandatory set-aside to direct some Commonwealth contracts to Indigenous enterprises

3. Minimum Indigenous participation requirements for certain Commonwealth Contracts

For more information on the IPP you can find it here.


2. State Indigenous Procurement Policies

Queensland - Queensland Indigenous Procurement Policy
Victoria - Tharamba Bugheen
New South Wales - Aboriginal Procurement Policy
South Australia - Aboriginal Economic Participation Strategy
Northern Territory - State under development previous policies were around construction and are currently being revised.
Western Australia - Aboriginal Procurement Policy
ACT - Aboriginal and Torres Strait Islander Policy
Tasmania - n/a


3. Corporate Reconciliation Action Plans

Amongst  Government policies many top organisations in Australia have registered their own internal commitment to the indigenous marketplace through Reconciliation Action Plans (RAP).

These RAP’s come in all shapes and sizes and are weighted against a reconciliation matrix, for example employment, procurement, retention, education and community engagement are some of the factors.  Criteria is set by Reconciliation Australia.


4. Kinaway, Victorian Indigenous Chamber of Commerce’s role in the Indigenous Procurement Policies.

Kinaway members are certified Victorian Indigenous Businesses and recognised by the Victorian and Federal Government Indigenous Procurement Policies. This means businesses who are Kinaway members are Victorian Indigenous businesses, providing a level of assurance for buyers the business meets the requirements of the Victorian or Federal Indigenous Procurement Policy. While providing services to our members to improve and develop their growth, we also assist Corporate Partners to source more goods and services from Indigenous businesses in order to meet tender targets. Damien Foley is the Relationship Manager for Kinaway and can be contacted directly on 0437 028 006.


If you have any questions or need more information, please contact:

Phone: (03) 9416 2304