Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the best Minister for Indigenous Affairs that we have had in generations, Senator Scullion. Can the minister update the Senate on the government's support for the Indigenous business sector, including through the Indigenous Business Sector Strategy?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I thank the senator for that question. The initiatives of this government are supporting all hardworking small businesses across Australia. Whilst those opposite oppose corporate tax cuts, instant asset write-offs and the TPP—and they still can't work out whether they are pro mining or anti mining—it is becoming painfully clear that only a coalition government stands for small business and Indigenous entrepreneurs. We know that Indigenous businesses face barriers to success other than just the Labor Party. Undercapitalisation has flowed from a lot of historical policies. So through our Indigenous Business Sector Strategy, which the Prime Minister recently launched, we have a suite of new initiatives to help overcome historical disadvantage and grow the sector to parity rates.

Upon our re-election we launched a $90 million Indigenous Entrepreneurs Fund for Indigenous businesses in remote and regional Australia to apply for capacity-enhancing plant and equipment grants to grow their businesses. More recently, we announced a $27 Indigenous Entrepreneurs Capital Scheme, which will unlock commercial finance for more established and mature Indigenous businesses.

We have also refocused Indigenous Business Australia's operations. They are now offering financial products such as a new start-up package and a new procurement loan designed to make payments coincide with an Indigenous Procurement Policy contract. For those at the very start of the journey in remote areas, where accessing a bank is virtually impossible, we are doubling microfinance to help turn CDP activities into microbusinesses.

All of these fantastic new initiatives will be brought together in Indigenous Business Hubs, which will effectively be one-stop shops for all of these services.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator O'Sullivan, a supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Thank you, Mr President. Can the minister advise how the government support of the Indigenous business sector is leading to corporate Australia increasing their own engagement with Indigenous businesses?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

Clearly, our Indigenous Procurement Policy has been a complete game changer, with around 1,000 Indigenous businesses across the country winning Commonwealth contracts worth over $1 million in the first 2½ years of the policy. That compares to just $6.2 million in 2012-13 under the policies we inherited.

What is most pleasing is that the Commonwealth leadership in this space has caused corporate Australia to sit up and take note. During Closing the Gap week, the Business Council of Australia stood with the Prime Minister and announced that they are introducing a template Indigenous procurement policy for their members to adopt. I commend them for that. That is a fantastic commitment that builds on the $356 million of business that their members are already procuring from Indigenous businesses. That's what I call making a real difference in the lives of the first nation Australians, and it is this government that is backing them with the right policy.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator O'Sullivan, a final supplementary question.

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

Thank you, Mr President. Can the minister explain why supporting Aboriginal and Torres Strait Islander small businesses leads to better outcomes for Indigenous communities?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

Clearly, backing Indigenous small business is positive, not only because it's getting people into small business ownership but also because it's getting more Indigenous job seekers into work. We know that the Indigenous businesses that are winning contracts under the Indigenous Procurement Policy have a workforce that is 41 per cent Indigenous, on average, which is 60 times that of other Australian businesses, which have workforces that are around 0.7 per cent Indigenous. This is reflected in the results. Since the last census there's been a 30 per cent increase in the number of Indigenous businesses compared with the last census and a 23.3 per cent increase in the number of Indigenous Australians in a job. Our policies across the board are working. We're getting record numbers of people into jobs, and we're giving some of the most disadvantaged Australians the dignity of work. (Time expired)