The Western Australian state government is preparing legislation that will transfer an estate called the Aboriginal Lands Trust into private ownership.
Currently, the land is administered by a statutory body established more than 50 years ago when church missions closed.
The move is part of a policy push to increase rates of individual home ownership in remote Aboriginal communities. The land comprises 20 million hectares, which encompasses 284 separate parcels of land, five pastoral leases, and 142 permanent indigenous settlements, home to an estimated 12,000 people.
The law change would mean Aboriginal people and even outside investors would be able to own homes in those communities for the first time.
Until now, strict tenure rules under the Aboriginal Lands Trust (ALT) have prevented development in communities, with Indigenous people having few options other than public housing.
“The Cook government is committed to delivering on its objective to divest the ALT estate into the direct control of Aboriginal people and entities,” the government said in a statement, claiming this would “facilitate social and economic outcomes that can be delivered through land tenure.
“The draft bill has been informed by consultation with Aboriginal community residents, native title parties, and other stakeholders and will be subject to a further round of consultation.”
WA Aboriginal Affairs Minister Tony Buti said the new law represented a significant step toward economic and social transformation in remote Aboriginal communities.
“It is an extremely complex process, and it takes time, but it is a priority for our government, and I am committed to ensuring we see positive and impactful change for these communities,” Dr. Buti said.
“As a government, we must continue to remove barriers, such as the inflexible land tenure arrangements [and] unresolved native title issues, and support the local delivery of public services, capacity building, training, and business assistance to start or expand Aboriginal enterprises.
“This will assist Aboriginal people to identify and negotiate opportunities that reinforce their native title rights and present new ventures for their community.”
However, the proposal could face opposition.
When the state government attempted to change Aboriginal heritage laws last year, both Indigenous leaders and the Pastoralists and Graziers Association of WA were highly critical.
Eventually, the law was scrapped just weeks after coming into force.
The latest WA proposal follows comments last week from federal Northern Australia Minister Madeleine King indicating funds set aside for resources and mining projects could instead be diverted into Aboriginal housing investment.
That plan would also facilitate residents in remote Indigenous communities becoming homeowners for the first time, making long-term lease payments that would profit the Northern Australia Infrastructure Facility.
Indigenous people wanting to purchase a home can apply under the Indigenous Home Ownership Program.
Delivered through Indigenous Business Australia (IBA), the program provides low-deposit, low-priced home loans for Indigenous Australians who face barriers to accessing mainstream finance.
It has assisted over 20,600 Indigenous families into home ownership over the last 40 years. IBA has also issued an average of over 500 home loans per year since 2011/12.
However, those living in remote communities, where title to the land is under the Aboriginal Lands Trust, are currently ineligible. The latest law change will remove that barrier.