Portfolio Budget Statements 2008-09  

• 1.1 Strategic Direction
• 1.2 Agency Resource Statement
• 1.3 Budget measures

1.1 Strategic Direciton

Indigenous Business Australia’s (IBA) vision is for a nation in which the First Australians are economically independent and an integral part of the economy. IBA was established by the Aboriginal and Torres Strait Islander Commission Amendment Act 2001 which came into effect on 17 April 2001. IBA extends on the role of the former Aboriginal and Torres Strait Commercial Development Corporation (CDC).

IBA was created to assist and enhance Aboriginal and Torres Strait Islanders’ economic advancement, primarily through facilitating Aboriginal and Torres Strait Islander equity involvement in sound commercial ventures. Under the enabling legislation, IBA is required to meet this role by accumulating and using a substantial capital asset base. The Aboriginal and Torres Strait Islander Commission Amendment Act 2001 specifically requires that IBA engages in commercial activities.

The Equity and Investments program invests directly in business opportunities with Indigenous Australians and organisations, usually through joint venture arrangements involving expert industry partners. Brokering and supporting industry partnerships with Indigenous businesses grows local economies, brings Indigenous Australians into the mainstream economy and helps them accumulate assets for further investment.

With the passage of the Aboriginal and Torres Strait Islander Act 2005 in March 2005, IBA’s responsibilities were expanded to include two new programs. These programs provide home loans and business loans together with business development assistance.

The Home Ownership Program provides concessional loans to low income Indigenous Australians and their families to enable them to purchase or construct a home. The program can also provide loans to assist in essential repairs or improvements.

The Business Development Program provides concessional business loans, and in certain circumstances, business grants. The program meets costs associated with the assessment of loan applications, the provision of aftercare to borrowers and general mentoring support for Indigenous people in business. The program also supports the cost of research to improve knowledge of regional economic circumstances which could impact on small business viability.

The Home Ownership on Indigenous Land Program, which was first established in October 2005, provides subsidised loan and grant packages secured by a mortgage over a long-term lease on Indigenous land.

IBA Constructions is a newly formed construction and facility management capacity that delivers essential infrastructure to communities to improve their economic outcomes. The aims of this initiative are to reduce the cost of construction in remote areas, increase Indigenous participation in the construction of local houses and to create small business and self-employment opportunities for Indigenous people.

IBA is contributing to the Northern Territory Emergency Response by:

• assisting in the creation of viable small businesses from CDEP enterprises
• providing asset leasing to community organisations to purchase new assets and equipment
• managing a trust for existing and new assets
• expanding the Outback Stores initiative to more communities in the Northern Territory to ensure that they have access to well-managed stores that provide healthy, reasonably-priced food.

These programs form the basis of IBA’s approach to Indigenous economic development. Our client base is mostly individuals and families who apply for loans through our home ownership or business development programs. The extension of home ownership to Aboriginal lands provides a further choice for Indigenous Australians who see the advantages in home ownership.

[ top ]

1.2 Agency Resource Statement

Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Third Party Drawdowns from and on behalf of other agencies

IBA does not have any Third Party Drawdowns from and on behalf of other agencies.

1.3 Budget measures

IBA has no new budget measures in 2008–09.