Indigenous Procurement Policy (IPP)

The purpose of the Indigenous Procurement Policy (IPP) is to leverage the Commonwealth’s annual multi-billion procurement spend to drive demand for Indigenous goods and services, stimulate Indigenous economic development and grow the Indigenous business sector.

The IPP was launched on 1 July 2015 and has three main parts:

  • A target number of contracts that need to be awarded to Indigenous businesses.
  • A mandatory set-aside for remote contracts and contracts valued between $80,000 - $200,000.
  • Minimum Indigenous participation requirements in contracts valued at or above $7.5m in certain industries.

Commonwealth milestone:12 month IPP outcomes

  • In the 2015-16 financial year, the Commonwealth Government exceeded its targets awarding 1,509 contracts, valued in total at $284.2 million to 493 Indigenous businesses.
  • This compares to Commonwealth contracts valued around $6.2 million awarded to Indigenous businesses in 2012-13. This is almost 46 times the value of Commonwealth procurements with Indigenous businesses in previous years.

Commonwealth Indigenous Procurement Target: 2015-16 financial year results

Performance against the target

  • The table below contains the number and value of Commonwealth domestic procurements awarded to Indigenous businesses from 1 July 2015 – 30 June 2016.
  • The data includes domestic contracts awarded to Indigenous businesses as reported on Austender, through portfolio sub-contracting arrangements and valued less than $10,000.
Commonwealth Indigenous Procurement Policy (IPP) Targets
First 12 Months Performance: Number and Value of Contracts
Portfolio Target
Contracts awarded
Total value of contracts
$ million
Defence 70 285 142
Human Services 18 254 10
Prime Minister and Cabinet 6 239 28
Treasury 19 116 35
Attorney-General's 19 91 4
Environment 14 80 4
Foreign Affairs and Trade 13 76 14
Employment 7 67 1
Agriculture and Water Resources 5 55 6
Education and Training 4 41 5
Social Services 6 36 4
Industry, Innovation and Science 15 33 15
Immigration and Border Protection 19 29 5
Finance 8 27 5
Health 12 27 4
Veterans' Affairs 4 19 1
Parliamentary Departments 4 15 1
Infrastructure and Regional Development 8 12 2
Communications and the Arts 5 7 0.1
Total Commonwealth 256 1,509 284

Performance against the mandatory set-aside

Performance against the mandatory set-aside
The total number of contracts reported on Austender in the 2015-16 financial year valued between $80,000 - $200,000 The no of contracts awarded to Indigenous businesses valued between $80,000 - $200,000
10,773 contracts 183 contracts
(142 of these contracts were awarded to businesses registered with Supply Nation)

Please note: Further information on remote contracts will be published in 2017. All queries can be directed to

Mandatory minimum requirements

  • Reporting on mandatory minimum requirements of Indigenous participation became binding on contractors from 1 July 2016. Reporting on these requirements will be collated in 2017.

Upcoming IPP events to promote Indigenous businesses

  • The Commonwealth hosts a variety of events throughout the year to promote the IPP. These events:
    • connect Indigenous businesses with Commonwealth officers and
    • increase the Commonwealth’s awareness of the range of goods and services that Indigenous businesses can provide.

Dates for PM&C hosted presentations by Indigenous businesses in 2016 – 17 financial year will be advertised on this website when finalised.

List of previous events with associated presentations.


Queries on the Indigenous Procurement Policy can be sent to

Further information on Indigenous Businesses

For further information on Indigenous businesses please visit the Supply Nation Indigenous Business Direct website at Supply Nation Indigenous Business Direct.

Indicative Indigenous Procurement Targets (number of contracts) by Portfolio

Due to the success of the policy’s first year, IPP portfolio targets of three per cent of new domestic Commonwealth contracts for 2020 were brought forward to 2016–17.

Increase in 2016–17 financial year portfolio procurement targets

Commonwealth Indigenous Procurement Policy (IPP) targets by portfolio
Portfolio Target number of contracts 2016-17 (3%)
Education and Training 21
Parliamentary Departments 25
Veterans' Affairs 25
Communications and the Arts 28
Agriculture and Water Resources 31
Prime Minister and Cabinet 38
Social Services 38
Employment 44
Finance 48
Infrastructure and Regional Development 48
Health 73
Foreign Affairs and Trade 78
Environment 84
Industry, Innovation and Science 90
Human Services 106
Immigration and Border Protection 111
Treasury 114
Attorney-General's 115
Defence 420
Total 1,537


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