Government to tender Indigenous verification process

The Federal Government is to open the Indigenous business verification system to competitive tender for the first time, aligning procurement oversight with upcoming changes to the Indigenous Procurement Policy (IPP).

The National Indigenous Australians Agency (NIAA) has confirmed it will release a Request for Tender later in the 2025–26 financial year to appoint a provider under the strengthened framework.

Key Points

Tender to verify Indigenous businesses

The NIAA’s move will formalise a competitive selection process to identify the organisation responsible for verifying Indigenous businesses that seek to access opportunities under the IPP. According to the agency, the appointment will sit within a broader redesign of how Indigenous businesses are assessed and recognised under Commonwealth procurement settings.

The tender announcement comes amid intensifying national debate over Indigenous business certification, procurement integrity, and concerns about “black cladding” within government and private contracting systems.

The issue has drawn heightened scrutiny as stakeholders push for stronger assurance that registered firms are genuinely Indigenous owned and controlled, and that public spending delivers intended benefits.

The Government’s reforms will tighten eligibility rules for businesses seeking access to the IPP. From 1 July 2026, businesses will need to be at least 51 per cent First Nations owned and controlled, or registered with the Office of the Registrar of Indigenous Corporations (ORIC). The shift is intended to lift ownership and control thresholds and reinforce the policy’s integrity settings.

Transitional arrangements will apply during the 2026–27 financial year. Under these arrangements, businesses operating under the existing 50 per cent Indigenous ownership threshold can continue participating while they transition to the new framework. The NIAA stated the transition period is designed to provide affected businesses with sufficient time to obtain verification under the strengthened system before the new requirements become mandatory.

The policy changes follow consultations held between December 2023 and March 2024. Those consultations canvassed concerns about procurement integrity, ownership structures, and whether Indigenous businesses were genuinely retaining control and economic benefit from Commonwealth contracts. Feedback during that process informed the design of the tightened verification settings and the phased transition approach.

Targets and transparency measures

The Commonwealth’s Indigenous procurement target will increase to 3 per cent from 1 July 2025, before rising incrementally to 4 per cent by 2030. The staged increase signals a sustained uplift in the proportion of Commonwealth procurement intended to involve Indigenous businesses over the next several years.

In parallel, the Government has committed to exploring stronger transparency measures around Indigenous participation requirements in major contracts. It has also signalled improvements to pathways for reporting suspected black cladding conduct, reflecting an emphasis on practical mechanisms to uphold policy integrity across complex supply chains.

For Indigenous businesses and procurement officials alike, the transition year will be pivotal. It is designed to allow organisations operating at the existing 50 per cent threshold to continue participating while undertaking any necessary changes to meet the 51 per cent ownership and control requirement or to secure ORIC registration. The Government’s stated focus on enhanced transparency and improved reporting pathways around suspected misconduct underscores an intention to reinforce trust and accountability as spending targets increase.

The NIBCA’s role as an advocate for stronger Indigenous control and greater transparency within certification and procurement systems remains a prominent thread in the unfolding reforms. As the verification function moves to competitive tender, attention will centre on how the appointed provider implements checks that align with community expectations and the policy’s objective of ensuring that benefits flow to Aboriginal and Torres Strait Islander business owners.

Stakeholders now have clear markers: the tender release later in 2025–26, the procurement target lift to 3 per cent from 1 July 2025, the introduction of 51 per cent ownership and control (or ORIC registration) from 1 July 2026, and the 2026–27 transition arrangements. Further detail from the NIAA on the tender specifications and verification standards will shape sector readiness ahead of the strengthened requirements becoming mandatory.

With increased procurement targets approaching and policy integrity measures under review, the verification provider’s performance will be central to maintaining confidence in the IPP. The Government’s exploration of stronger transparency around Indigenous participation in major contracts, along with improved avenues for reporting suspected black cladding, indicates a parallel push to address both entry standards and ongoing compliance across the procurement lifecycle.