The total procurement spend with Indigenous-owned businesses increased year over year, reaching AU$5.83 billion, with the mining and resources industries recording the largest procurement spend for the 2024-2025 fiscal year.
According to Supply Nation’s latest State of the Indigenous Business report, mining was the biggest spender for the year with AU$1.65 billion, followed by construction with AU$1.26 billion.
Government departments and agencies were the third largest spenders, recording AU$1.53 billion in procurement spending.
The State of Indigenous Business report draws on data from Supply Nation’s supplier and member records to provide a comprehensive view of trends, challenges and opportunities in the Indigenous business sector.
According to the report, the 2024-2025 fiscal year showed significant growth in procurement spending with Indigenous suppliers, as a new milestone was reached with spending increasing to over AU$5.83 billion from AU$4.6 billion in the previous fiscal year.
“In a difficult year with trade disruptions, economic uncertainty and cost of living challenges, our members and suppliers have continued to seek opportunities for commercial collaboration, driving growth and resulting in positive economic and social outcomes,” according to Kate Russell, Supply Nation CEO.
“The report found that the overwhelming majority of procurement spend went to Certified Suppliers, businesses that are 51 per cent or more Indigenous owned, managed and controlled, rather than with Registered Suppliers, 50 per cent or more Indigenous-owned.
“This supports the recent reforms by the federal government to increase the definition of an Indigenous business to 51 per cent.”
Western Australia and New South Wales reported the highest procurement spend, while urban suppliers accounted for 82 per cent of procurement, compared with just 18 per cent for remote and rural businesses.
Meanwhile, businesses led or owned by women made a significant contribution to the sector, receiving AU$1.52 billion in procurement spend.