The 2026-27 Budget hasn’t been handed down yet — it’s due on 12 May 2026. This article recaps the most recently delivered budget (2025–26), which is packed with relevant measures.
Published on firstnationsbusinessdirectory.au/blog/
The 2025–26 Federal Budget, delivered on 25 March 2025, was one of the most significant for First Nations economic participation in recent years. Against a backdrop of rising cost-of-living pressures and a national commitment to Closing the Gap, the Albanese Government allocated $1.3 billion over six years to First Nations-specific investments — with a meaningful portion directed at strengthening the Indigenous business sector.
If you run an Aboriginal or Torres Strait Islander business, here is what the budget means for you — broken down into the areas that matter most.
1. A Stronger Indigenous Procurement Policy
For Aboriginal business owners, the single most impactful budget measure is the strengthening of the Indigenous Procurement Policy (IPP).
The budget committed $23.9 million to create more job opportunities for First Nations businesses through the Indigenous Procurement Policy.
The reforms go beyond funding. The Commonwealth’s Indigenous procurement targets have increased from 2.5% to 3% of the total value of contracts starting 1 July 2025, with targets rising annually by 0.25% until they reach 4% by 2030. That means a growing share of government spending — across thousands of contracts — is earmarked for verified Indigenous suppliers each year.
There are also important changes to eligibility. Under new IPP criteria, businesses must demonstrate they are at least 51 per cent First Nations-owned and controlled (or registered with the Office of the Registrar of Indigenous Corporations) to access IPP procurement contracts — an increase from the previous 50% threshold. Transition to the new criteria begins 1 July 2026.
The IPP reforms also include consultation with regulators to improve methods of reporting “blackcladding” — disingenuous conduct designed to gain access to policies like the IPP — helping empower legitimate First Nations business owners to run their businesses and exercise their rights as majority owners.
What this means for you: If your business is already registered and verified, the expanded procurement targets represent a real increase in contracting opportunity. If you haven’t yet registered on a directory like this one, now is the time — buyers are actively looking to meet rising procurement obligations.
2. Support for First Nations Businesswomen and Entrepreneurs
The budget committed $3.4 million to establish a coaching and mentoring program specifically for First Nations businesswomen and entrepreneurs.
This is a targeted investment in an often under-served segment of the Indigenous business community. Aboriginal and Torres Strait Islander women are founding and leading businesses across the country — from bush food enterprises and creative industries to construction, consulting, and technology — and dedicated mentoring support can make a tangible difference to business survival and growth.
Details of how to access this program are expected to be confirmed through the National Indigenous Australians Agency (NIAA). Keep an eye on niaa.gov.au and subscribe to updates from Indigenous Business Australia for application information.
3. More Capital Through Indigenous Business Australia
The budget boosted Indigenous Business Australia’s Home Loan Capital Fund by $70.9 million over two years from 2025–26 to increase opportunities for First Nations Australians to buy their own home and build intergenerational wealth.
For business owners, this matters beyond the obvious housing benefit. Home ownership is closely linked to business success — it provides financial security, collateral for business lending, and long-term stability for families. IBA issued $77.2 million in finance to 172 Indigenous businesses in 2024–25, while also supporting 185 Indigenous entrepreneurs in building their capability and running business workshops for 866 budding business people.
In late 2024, the Government successfully passed amendments to IBA’s enabling legislation, positioning IBA to raise capital and borrow funds to fulfil growing demand for Indigenous home ownership, business support and investment. The budget builds on this expanded mandate — meaning IBA is better positioned than ever to support your business growth, regardless of whether you are just starting out or looking to scale.
What this means for you: If you haven’t explored IBA’s business finance and support offerings, this is a good time to do so. Visit iba.gov.au to see current business loan products, capability-building programs, and workshops available in your region.
4. The Northern Territory Remote Aboriginal Investment
The budget confirmed $842.6 million over six years from 2025–26 for the National Partnership on Northern Territory Remote Aboriginal Investment, in partnership with the NT Government and Aboriginal Peak Organisations NT.
This is not purely a service delivery package. Investment in remote community infrastructure, housing, health and education creates real procurement and supply chain opportunities for Aboriginal businesses — particularly those operating in construction, maintenance, logistics, health services, catering, and community services.
If your business operates in or around remote Northern Territory communities, monitoring NT Government and Commonwealth tender opportunities tied to this program is worthwhile. Registering on the Aboriginal Business Directory WA and Supply Nation’s Indigenous Business Direct are key steps to being visible to buyers sourcing for these projects.
5. Broader Business Measures That Apply to You
Several general small business measures in the budget also apply to Aboriginal business owners:
- Energy bill relief: Eligible small businesses received $150 in energy bill relief through two quarterly instalments — an extension of the energy rebate scheme introduced in the previous budget.
- Tax cuts: From 1 July 2026, the 16% personal income tax rate reduces to 15%, delivering an extra tax cut of up to $268 for individual earners — rising to $536 per year from 2027–28. For small business owners who pay tax at their personal rate, this is money back in your pocket.
- Non-compete clause ban: From 2027, non-compete clauses will be banned for workers earning below the Fair Work high-income threshold — giving small businesses, including Indigenous enterprises, more freedom to hire experienced staff.
6. What Advocates Are Saying
The sector’s response to the budget has been cautiously positive, but there are calls for more. Pat Turner, lead convener of the Coalition of Peaks — which represents more than 80 Aboriginal community-controlled organisations — acknowledged the changes, noting the IPP reforms support economic empowerment for First Nations people and directly contribute to Closing the Gap.
However, researchers and business leaders have been consistent in their message: government procurement policy, while important, is not enough on its own. What the sector needs is deeper access to private sector supply chains, removal of barriers to commercial lending, and investment in the next generation of Indigenous entrepreneurs.
7. What’s Coming Next: The 2026–27 Budget
The next Federal Budget will be handed down by Treasurer Jim Chalmers on 12 May 2026 — the first budget following Labor’s re-election in the 2025 federal election. The Treasurer has indicated the budget will aim to lift the productivity of the economy, with a focus on a savings package and a productivity package.
It remains to be seen what specific commitments will be made for First Nations businesses in the upcoming budget. Advocacy organisations, peak bodies, and Indigenous business networks are actively making submissions. If you want your voice heard, consider engaging your local Aboriginal Chamber of Commerce or industry body before the budget is delivered.
Key Takeaways for Aboriginal Business Owners
Here is a quick summary of what to action now:
- Register your business on a verified Indigenous business directory to be visible to government and corporate buyers meeting rising IPP targets
- Review your ownership structure to ensure you meet the new 51% ownership threshold taking effect from 1 July 2026 under the IPP
- Explore IBA finance and support — more capital is available, and new mentoring programs for First Nations entrepreneurs are being established
- Watch for NT procurement opportunities tied to the $842.6 million Northern Territory Remote Aboriginal Investment
- Claim your energy rebate if you haven’t already — eligible small businesses can access $150 in relief
- Mark 12 May 2026 in your calendar for the next Federal Budget and follow updates from NIAA, IBA, and Supply Nation
The 2025–26 budget represents genuine forward movement for First Nations economic participation. The challenge now is for Aboriginal business owners to be positioned and registered to take advantage of the opportunities it creates.
Is your business listed on the First Nations Business Directory? Register today and connect with buyers, government agencies, and procurement teams actively seeking Aboriginal and Torres Strait Islander suppliers.
This article is based on the 2025–26 Federal Budget delivered 25 March 2025. The 2026–27 Federal Budget is scheduled for delivery on 12 May 2026. For the most current program details, visit niaa.gov.au and iba.gov.au.
