The Indigenous Procurement Policy in 2026

What the policy does

Introduced in 2015, the Indigenous Procurement Policy sets targets for the share of government contracts awarded to Indigenous businesses. It has since directed billions of dollars to the First Nations business sector, and it has helped a generation of enterprises grow, employ and reinvest in community.

What is changing in 2026

The policy is being overhauled with higher targets across the Australian Public Service and tighter eligibility rules, set out in new guidelines dated May 2026.

The higher targets lift the ambition. The tighter eligibility makes sure the benefit reaches businesses that are genuinely owned and controlled by Aboriginal and Torres Strait Islander people.

Why tighter eligibility matters

The change targets a practice known as black cladding, where a business with only a token Indigenous connection presents itself as First Nations to win work. Tighter rules protect real First Nations businesses from being crowded out.

The simplest way for a buyer to be sure is to choose suppliers certified by Supply Nation or a state body such as Kinaway, which verify ownership and control.

What this means for every buyer, not only government

Even if you are not bound by the policy, its direction is a useful guide. Supplier diversity is one of the most practical commitments in a Reconciliation Action Plan, because it moves real money.

A good place to start is everyday spend that every workplace already has, such as tea, catering and gifts, then choose certified First Nations suppliers for it.

Where Ilan Style fits

Ilan Style is 100% Torres Strait Islander and Meriam woman-owned, and certified by both Supply Nation and Kinaway.

We supply native Australian tea for offices, events and gifting, and every purchase also supports Torres Strait Islander language revitalisation through the Ilan Style Fellowship.

If your organisation has a procurement or Reconciliation target, we would like to help you meet it.