On 1 July 2020 changes to the Indigenous Procurement Policy (IPP) came into effect.
The changes to the IPP first announced by the Australian Government in 2019 include:
– The requirement to include mandatory minimum Indigenous participation targets (MMR) in approaches to market from 1 July 2020 for Commonwealth contracts valued at $7.5 million or more now apply to an additional 11 industry categories, bringing the total number of industry categories required to contain Indigenous employment and/or supply use targets to 19.
– The Commonwealth value target for purchasing from Indigenous businesses has increased from 1 per cent to 1.25 per cent of the value of eligible procurements for the 2020-21 financial year. This target will continue to increase by 0.25 per cent each financial year until 3 per cent is reached. The 3% volume target remains in place.
These changes will increase the demand for Indigenous businesses across a broad range of industries sectors, assisting to minimise the impact of the COVID-19 pandemic on the Indigenous business sector.
An updated version of the Indigenous Procurement Policy is now available on the NIAA website. Tailored guidance material to support the implementation of the mandatory minimum requirements can be found here.
Should you have any queries, please contact the Wirra Hub on (08) 6250 7100.