Most organisations are trying to do the right thing and increase their Indigenous procurement spend, but they have a problem with how they’re interpreting it. And that gap is costing them, in missed targets, underreported spend and unnecessary complexity.
The Core Misunderstanding
The most common assumption we see is:
“Indigenous procurement means engaging Indigenous workers”
It doesn’t.
Under both the Indigenous Procurement Policy (IPP) and the NSW Aboriginal Procurement Policy (APP), the requirement is clear:
Spend must be directed to Indigenous-owned businesses (typically ≥50% ownership and control)
It does not have anything to do with workforce composition, internal diversity metrics or intent.
Why This Matters More Than You Think
This isn’t just a technical distinction. It directly impacts:
- Whether your spend actually counts toward targets
- Whether you’re under or over reporting Indigenous procurement
- Whether you’re missing compliant opportunities already in your supply chain
In many cases, organisations are closer to their targets than they think, they’re just not structuring or capturing it correctly.
What Actually Counts (With Real-World Precision)
Here at Goanna, we want to remove the ambiguity. Here are some ways to reliably increase your Indigenous spend:
✔ Indigenous-Owned Supplier (Direct Contract)
- Supplier is ≥50% Indigenous-owned and controlled
- May be verified through Supply Nation, NSW Indigenous Chamber, or equivalent evidence
✅ Counts in full
✔ Indigenous-Owned Labour Hire / Services Provider
- Workers may be non-Indigenous
✅ Still counts
✔ ICT Procurement via Indigenous Reseller
- Hardware/software may come from global vendors
- Contract is with Indigenous-owned supplier
✅ Counts
✔ Subcontracting (Where It Often Goes Wrong)
- Tier 1 supplier engages an Indigenous-owned subcontractor
✅ Only the portion of spend paid to that Indigenous business counts
❗ Must be contractually defined, attributable and reportable
⚠️ Individual Contractors (Nuance Matters)
- Indigenous individual operating as a registered business / sole trader
✅ Can count - Indigenous individual engaged as labour (PAYG / internal resource)
❌ Does not count
❌ What Does NOT Count
- Non-Indigenous supplier with Indigenous employees
- Internal workforce diversity
- Spend not attributable to an Indigenous-owned entity
Where Most Organisations Are Leaving Value on the Table
This is where things get interesting. Across procurement reviews, we consistently see:
1. Underreported Indigenous Spend
Existing engagements that should count, but aren’t being captured.
Common examples:
- ICT resellers
- Labour hire panels
- Consulting engagements
2. Misaligned Procurement Pathways
Buying direct from:
- Tier 1 vendors
- Global providers
Instead of routing through:
- Indigenous-owned intermediaries or partners
3. Over-Focus on Low-Value Engagements
Historically driven by volume-based targets
But policy direction (especially under IPP) has shifted toward:
✔ Higher-value contracts
✔ Supply chain participation
✔ Measurable economic impact
The Structural Piece Most People Miss
Indigenous procurement isn’t just guidance, it’s embedded in policy mechanisms. At a Federal level (IPP), this includes:
- Mandatory set-asides for certain contracts
- Agency-level targets
- Participation requirements in high-value contracts
At a NSW level (APP):
- Agencies are required to direct a minimum percentage of addressable spend to Aboriginal businesses
- Procurement thresholds and exemptions apply
This is why it’s not optional, and why getting it wrong creates risk.
The Real Opportunity (Not Just Compliance)
Here’s the shift most organisations haven’t made yet:
From:
→ “How do we meet the requirement?”
To:
→ “How do we structure our spend so it counts?”
Because in practice:
Most organisations are already spending 2–5x more with Indigenous businesses than they realise
It’s just not being directed or recognised properly.
A Simple Reset
If you’re unsure where you stand, start with three questions:
- Are we buying from Indigenous-owned businesses , or around them?
- Is our spend structured so it can be clearly attributed and reported?
- Where in our supply chain could Indigenous suppliers be introduced without changing delivery?
Final Thought
Indigenous procurement isn’t complicated, but it is very easy to get wrong. And the difference between:
- missing targets
- and exceeding them
often comes down to something simple:
Where your money flows, not how your workforce looks.
If you’re not sure whether your current spend is being recognised correctly, it’s usually quick to map.
Goanna Solutions is not only positioned to support you in achieving your Indigenous spend targets as a technology service provider, we are also able to assess your current Indigenous spend and connect you with reputable and certified Indigenous businesses throughout Australia based on your needs.
If you want to chat about how Goanna Solutions can support you , email us on hi@goanna.group or submit a query through our contact form.