Legislative Hurdles, Land Issues, Capital Access Under Scrutiny for Indigenous Development

The site of the Aboriginal Tent Embassy protest in Canberra, Australia, on Feb. 8, 2024. Melanie Sun/The Epoch Times

Access to capital, unlocking Indigenous land assets, and empowering Indigenous corporations took centre stage at the Senate Inquiry into economic self-determination for First Nations Australians held on Sept. 30.

With a sharp focus on removing systemic barriers, representatives called for fiscal and legislative reforms to complement social policies like “Closing the Gap” and drive true economic participation. The committee is chaired by Victorian Labor Senator Jana Stewart.

The message was clear: without bold changes to funding mechanisms and capacity-building initiatives, Indigenous communities will continue to face obstacles on the path to economic empowerment.

Professor Peter Yu, Vice-President (First Nations) at the Australia National University, outlined the obstacles faced by Indigenous communities when trying to achieve economic empowerment.

“There are, however, very serious and systemic impediments, barriers that prevent the nature of being able to get the results that everybody wishes to see,” Yu said.

Legislative Changes Required

Yu outlined the need to learn from international examples, particularly Canada’s approach to economic reconciliation.

He pointed to Canada’s 2005 Canadian Fiscal Management Act, a law that provides statutory support to build capacity and offer capital access to Indigenous communities.

“These organisations facilitate coordination and enable Indigenous communities and corporations to fully participate in the economy,” Yu stated.

Yu also addressed the shortcomings of Australia’s Closing the Gap framework. When asked by Senator Varun Ghosh about its effectiveness, Yu argued that the framework has largely failed to prioritise economic empowerment and instead perpetuated a “social deficit approach.”

This, he said, has been a result of historical colonial policies that have marginalised Indigenous communities, viewing them as reliant on welfare.

Land Issues and Capital Access

A significant focus of the discussion was the need to reform the way Indigenous land and Native Title assets are utilised.

Representatives argued that economic development programs for Indigenous people is largely focused on employment and job creation, with limited attention to broader fiscal strategies.

Yu highlighted the need for a more comprehensive approach, stating, “We must explore how to leverage the government’s balance sheet and address the flow and deployment of capital for sustainable growth.”

He said that substantial land assets, 60 percent and upwards are held by Indigenous Australians in northern Australia.

However, he stressed the need to activate these assets for economic growth.

“These are assets that could significantly contribute to Australia’s economy, but we need to unlock their potential,” Yu said.

He called for a broader fiscal approach that would allow for the leverage of Indigenous land assets to generate long-term economic benefits.

Yu proposed the exploration of long-term lease agreements for Indigenous land that would not require extinguishing Native Title.

“Extinguishing Native Title is a repugnant notion for many in our community,” he said, calling for structural reforms that would allow Indigenous landholders to leverage their assets without losing ownership.

Joseph Morrison, Group Chief Executive Officer of the Indigenous Land and Sea Corporation, echoed the need for operational reforms within Indigenous corporations.

He spoke about the role of the “deed of grant,” a legal document that includes a caveat to protect Indigenous and Torres Strait Islander properties.

The caveat ensures that, even if a corporation faces financial difficulties, their land will not fall into non-Indigenous hands. In such cases, a title search triggers a process that safeguards Indigenous ownership.

“The caveat acts as a safety net to prevent the land from being lost, which is critical for protecting Indigenous assets,” he said.

Accessing Capital

Morrison highlighted the need for flexibility in funding mechanisms. He noted that the current restriction, which allows funding only to Torres Strait Islander corporations under legislation, creates significant barriers.

“This has been seen as a significant hurdle, as many Indigenous people are involved with non-Indigenous corporations working on their land,” said Morrison.

There were also discussions about the limitations of drawdowns from available funds. Morrison pointed out that under current legislation, corporations often face delays in securing funds, particularly when time-sensitive property purchases are involved.

The system is based on outdated Consumer Price Index (CPI) values from 2010, and many Indigenous corporations struggle to receive capital in a timely manner.

Morrison confirmed that discussions are ongoing with Treasury and the Department of Finance to address these funding challenges.

“Potential legislative changes could increase drawdown limits and streamline the approval process, allowing for more responsive and flexible support for First Nations projects,” he said.