Native Title Report 2006: Appendix 2: National funding and programs to support Indigenous economic development

Native Title Report 2006

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Appendix 2: National funding and programs to support Indigenous economic development

Appendix 1 << Appendix 2 >> Appendix 3

Appendix 2 summarises information from a 2006 HREOC survey of the seven Australian Government departments and two statutory authorities with responsibility to administer the 33 national Indigenous economic development programs. Information from the 33 programs is for the 2005 – 2006 period.

Chart 26 summarises application numbers and expenditure data by program.

CHART 26: APPLICATIONS AND EXPENDITURE FOR NATIONAL INDIGENOUS ECONOMIC DEVELOPMENT PROGRAMS 2005 - 2006

Funding Program	No. of successful applications	No. of unsuccessful applications	Total No. of Applications	Expenditure  $
Indigenous Capital Assistance Scheme – DEWR	N/P*	N/P	21 (ICAS loans)	$77,710,000
Indigenous Small Business Fund – DEWR	N/P	N/P	N/P
Emerging Indigenous Entrepreneurs Initiative – DEWR	N/P	N/P	N/P
Structured Training and Employment Projects – DEWR	N/P	N/P	N/P
Indigenous Employment Centres – DEWR	N/P	N/P	N/P
Wage Assistance – DEWR	N/P	N/P	N/P
Corporate Leaders for Indigenous Employment Project – DEWR	N/P	N/P	N/P
CDEP Placement Initiative – DEWR	N/P	N/P	N/P
Indigenous Community Volunteers – DEWR	N/P	N/P	N/P
Community Housing and Infrastructure Program – FaCSIA	53	52	105	$18,196, 771
Indigenous Land Management Facilitator Program – DEH	N/A**	N/A	N/A	$584,000
Indigenous Heritage Program – DEH	70	61	131	$3, 256,000
Indigenous Protected Area Program – DEH	30	N/P	30	$1, 366,500
Environmental Education Grants – DEH	0	0	0	Nil
New Industries Development Program – DAFF	N/A	N/A	N/A	N/A
Australian Government Envirofund (NHT) – DAFF	3	2	5	$91, 460
Regional Partnerships Program – DOTARS	13	2	15	$1, 057,166
Sustainable Regions Program – DOTARS	1	1	2	$996,782
Indigenous Partnership Program – DITR	N/A	N/A	N/A	N/A
Australian Tourism Development Program – DITR	6	N/P	6	$1, 159,220
Business Ready Program for Indigenous Tourism – DITR	6	28	34	824,000
Indigenous Telecommunications (TARPIC) – DCITA	N/A	N/A	N/A	N/A
National Arts and Crafts Industry Support Program – DCITA	53	49	102	$4, 249,350
Networking the Nation	N/A	N/A	N/A	N/A
IT Training and Support	N/A	N/A	N/A	N/A
Satellite Phone Subsidy Scheme – DCITA	53	16	69	$4, 124
Indigenous Broadcasting Program – DCITA	76	42	118	$13, 282,202
Land Acquisition Program – ILC	8	65	73	$7, 934,024
Land Management Programs – ILC	38	24	62	$13, 180,288
Indigenous Business Development Program – IBA	86	24	110	$27, 197,000
Loans and Joint Venture Capital – IBA (Investments)	33	48	81	$45, 570,000
Home Ownership Program – IBA	580	N/P	580	$29, 746,000
Home Ownership on Indigenous Land – IBA	0	0	0	$99,000
TOTALS:	1,109	414	1,544	$246, 503,887

N/A: Not Applicable

N/P: Not Provided

The following section summarises by program:

• The aims and objectives of each program; and
• The reasons for unsuccessful funding applications.

THE INDIGENOUS LAND CORPORATION (ILC)

The Indigenous Land Corporation (hereon referred to as the ILC) is a statutory authority with responsibility to fulfill the dual functions of land acquisition for grant to Indigenous corporations and land management. The ILC assists Indigenous Australians acquire land and manage Indigenous-held land in a sustainable way to provide cultural, social, economic or environmental benefits for themselves and future generations.1

The ILC administers two programs.

• The Land Acquisition Program
• The Land Management Program

 Under the Land Acquisition Program Indigenous Australians can apply for land purchases against the following four criteria: cultural, social, environmental and economic land use purposes. The land purchase is made by the ILC trust on the open market. Applicants enter into a lease with the ILC, and ownership vests with the ILC. The lease is subject to conditions including a staged work plan, capacity development activities with progress reporting requirements. If the work plan is completed successfully the land is usually granted after a period of three years. In the 2005-2006 financial year there were 73 land acquisition applications, 8 were successful. Land was purchased at a total cost of $7,934,024.2 According to the ILC, applications were assessed against the following criteria: the capacity and commitment of the applicant group; the project viability and sustainability, and land suitability. Reasons for unsuccessful applications were incomplete applications, application for funds outside of the program guidelines, or the situation where the property is sold prior to Board submission.

Under the Land Management Program Indigenous Australians can apply for funds to assist in the managed care, improvement or development of either ILC or Indigenous held land. ILC provides training, and support as well as advice on commercial enterprise. Financial assistance is available in the form of financial guarantees, loans and grants for land management activities. In the 2005-2006 financial year there were 62 applications of which 38 were successful. ILC advised a total expenditure of $13,180,288 for 11 land management projects during the 2005-2006 financial year.

An internal ILC evaluation report3 of the Land Acquisition Program found that of the 42 groups interviewed about the program:

• 11 of 16 indicated their land was being used for cultural purposes, including artwork production for galleries, family gatherings, museums or keeping places, taking kids out on country and gathering or growing bush foods;
• 56 percent of groups interviewed agreed that assistance provided by the ILC has helped to address social problems including drug and alcohol rehabilitation, family violence prevention and education and work experience;
• Over half of the groups interviewed agreed that land improvements had occurred as a result of ILC assistance, including revegetation, weeds, fire and feral animal management programs were conducted and the protection of watercourses and threatened species was being achieved;
• 11 of the desktop assessed projects recorded that ILC assistance had contributed to employment outcomes. Of the 16 groups interviewed face-to-face, nine indicated that Indigenous people were employed on their land as a result of ILC assistance.
• Of the 16 groups interviewed, ten indicated Indigenous training outcomes as a result of ILC assistance and of those desktop assessed, 14 recorded training outcomes. It was noted that not only economic projects delivered employment outcomes with over half of the total recorded employment outcomes being generated through the social projects.4 

INDIGENOUS BUSINESS AUSTRALIA (IBA)

Indigenous Business Australia is a statutory authority with responsibility to provide opportunities for Aboriginal and Torres Strait Islanders to build assets and wealth in partnership with the Australian Government’s Indigenous Economic Development Strategy. In 2005–2006 Indigenous Business Australia administered four programs supporting enterprise and economic development. They were:

• The Indigenous Business Development Program
• The Loans and Joint Venture Capital program (IBA Investments)
• Home Ownership program (IBA Homes)
• Home Ownership on Indigenous Land program

The Indigenous Business Development Program supports small and medium businesses in their establishment and their ongoing performance. It provides business grants and loans and assistance with set up costs. In the financial year 2005-2006, the program received 122 applications and approved 86 loans with 12 loan applications subsequently withdrawn. The total expenditure for the financial year was $27,197,000.5 The most common reason for unsuccessful applications was that the business did not demonstrate commercial viability.

The Loans and Joint Venture Capital program (IBA Investments) seeks to ‘stimulate an environment where the private sector and Indigenous groups, families and individuals seek to involve each other in business opportunities.’6 The program facilitates and supports business ownership and management of commercial enterprises through joint ventures. Enterprises are selected on the basis for their capacity to provide long-term commercial returns. In 2005-2006 financial year the program outputs were $45,570,000. A total of 81 projects were considered and 33 investments were monitored.7 

The Home Ownership program aims to provide a range of competitive housing loans to eligible Aboriginal and Torres Strait Islander peoples who may not qualify for assistance from mainstream lending institutions. The program approved 580 new loans during the 2005-2006 financial year with a total expenditure of $29,746,000.8

The Home ownership on Indigenous land program objectives are to provide a range of home loans to eligible Indigenous people to assist them in buying their own homes on community-titled land. While loans were not made during the 2005-2006 financial year, cost outputs for the development of the program were $99,000 for this period.

DEPARTMENT OF EMPLOYMENT AND WORKPLACE RELATIONS (DEWR)

The Department of Employment and Workplace Relations administers the majority of Australian Government Funding Programs that focus on supporting Indigenous enterprise and economic development including:

• Emerging Indigenous Entrepreneurs Initiative
• Indigenous Small Business Fund
• Indigenous Capital Assistance Scheme
• Structured Training and Employment Projects
• Indigenous Employment Centres
• Wage Assistance
• Corporate Leaders for Indigenous Employment Project
• CDEP Participant Employment Placement Initiative
• Indigenous Community Volunteers

In response to the survey request for budget information for each of these programs during the 2005-2006 financial year, DEWR claimed that it was not able to disaggregate funds for the nine programs. Instead DEWR provided a single budget figure of $77,710,000 which was expenditure against all nine programs. The administered budget was $77,716,000.9

The Emerging Indigenous Entrepreneurs Initiative was established in 2005 with an aim to encourage Indigenous entrepreneurs to pursue self-employment and small business opportunities. This program does not provide grants or loans. It provides workshops for emerging Indigenous entrepreneurs supported by departmental commissioned publications including case studies of successful Indigenous enterprises, and information about funding and support programs.10 Proposals for participation in this program are rejected unless they can demonstrate that the business outcome will lead to multiple enterprise outcomes.11

The Indigenous Small Business Fund assists Indigenous Australians to learn about business, develop skills and expand businesses. Of the applications received under this fund, 145 were approved.12  Funding is aimed at the identification and facilitation of business opportunities and supports access to markets and networks.

The Indigenous Capital Assistance Scheme offers Indigenous businesses access to commercial finance, professional mentoring and support services. Thirteen loans were approved in the 2005-2006 financial year. The businesses supported by this program were primarily tourism, construction, agriculture and retail trade industries.13



The Structured Training and Employment Projects provide flexible financial assistance for projects that offer structured training leading to lasting employment for Indigenous jobseekers.  In the 2005-2006 financial year, 3,505 Indigenous people were registered under the employment and training program across hospitality, retail, mining, plumbing, carpentry, electrical trades, childcare, aged care, media, technology, aquaculture and agriculture.

Indigenous Employment Centres assist participants in Community Development Employment Projects to move into unsubsidised employment. In the 2005-2006 financial year, 10 new centres were established bringing the total to 43. DEWR invites CDEP organisations to become Indigenous Employment Centres where there are viable labour markets and organisations have been assessed as being able to provide assistance to participants.14 According to the DEWR Annual Report 2005-2006, over 3,700 CDEP participants have been placed in employment with more than 64 percent achieving 13 weeks outcomes.15

The Wage Assistance Program provides a wage subsidy for 26 weeks for employers who offer continuing full-time work to eligible Indigenous Australia. In the 2005-2006 financial year, DEWR subsidised 2,658 employment placements, bringing the total to over 16,790 since the program’s inception in 1999.

The Corporate Leaders for Indigenous Employment Project is a partnership between individual companies and the Australian Government aimed at generating sustainable employment for Indigenous Australians. In the 2005-2006 financial year, 17 new private sector companies from a range of industries joined the project. There are currently 82 signed partners.

The Community Development Employment Project Placement Initiative provides an incentive payment to CDEP organisations per participant placement in open employment. In the 2005-2006 financial year 2,184 commencements were recorded.

Indigenous Community Volunteers is a not-for-profit company contracted to deliver the volunteer program on behalf of the Australian Government. The company links skilled volunteers with communities seeking expert assistance in business, financial management and the trades. In the 2005-2006 financial year 225 volunteers were involved in projects with Indigenous communities. In the 2005-2006 financial year there were 397 new project applications.

The Department of Employment and Workplace Relations advised that the most common reason for unsuccessful applications was that applicants did not meet the program guidelines.16

DEPARTMENT OF THE ENVIRONMENT AND HERITAGE (DEH)

The Department of the Environment and Heritage administer four programs that support Indigenous access to funding for land management, improved on-ground heritage outcomes for Indigenous communities and engage Indigenous landowners on managing land for conservation. These programs include: 

• Indigenous Land Management Facilitator Program
• Indigenous Heritage Program
• Indigenous Protected Areas Program
• Environmental Education Grants 

Of the funding applications received by the Department from Indigenous groups, eighty-three percent of applications were successful.

The Indigenous Land Management Facilitator Program funds a network of 13 Indigenous Land Management Facilitators(ILMFs) hosted by either Indigenous organisations or State Government agencies or Natural Resource Management organisations who work with the Indigenous community to improve awareness of and access to natural resource management funding. ILMFs are often involved with planning meetings and the development of Shared Responsibility Agreements and Regional Participation Agreements that relate to land and cultural heritage management.17 In the 2005-2006 financial year a total of $584,000 was provided to five Indigenous organisations.

The Indigenous Heritage Program provides funding ‘towards the delivery of improved on-ground heritage outcomes for Indigenous communities and improved alignment with national heritage priorities.’18 In the 2005-2006 financial year, the total expenditure was $3,256,000. There were 70 successful applications and 61 unsuccessful applications. Applications are most commonly unsuccessful when they are not eligible under program guidelines or they do not adequately address the selection criteria.

The Indigenous Protected Area Program aims to engage with Indigenous land owners on managing land for conservation. In the 2005-2006 financial year $1,366,500 was expended for this program. There were a total of 30 successful applicants. The most common reason for unsuccessful application is that the land in question would not represent a significant addition to the National Reserve System, or the Indigenous organisation does not demonstrate a commitment for their land. 

The Environmental Education Grants is a small grants program providing funds of approximately $250,000 each year. In the 2005-2006 financial year there were no applicants and no funds were allocated.19

DEPARTMENT OF INDUSTRY, TOURISM AND RESOURCES (DITR)

The Department of Industry, Tourism and Resources provided data on three programs, two of them Indigenous specific and one under a general program area. These include:

• Australian Tourism Development Program (not Indigenous specific)
• Indigenous Partnership Program
• Business Ready Program for Indigenous Tourism

The Australian Tourism Development Program is aimed at developing new products or expanding and enhancing existing tourism products and services. In the 2005-2006 financial year a total of $1,159,220 was allocated to 6 Indigenous tourism enterprises.20 The most common reasons that applications are unsuccessful include:

• The eligibility criteria is not met, for example, the applicant is not an incorporated entity, or insufficient evidence of matching cash is provided;
• The evaluation criteria has not been met to a high degree; and
• The funding available prevents all quality applications from being funded

The Indigenous Partnership Program is aimed at hosting regional workshops and committees in areas around Australia where mining is prominent, to provide advice and information to industry and Indigenous stakeholders. Funds are not allocated to Indigenous groups or corporations. Travel assistance is provided to individual Indigenous representatives to enable them to attend regional meetings.

The Business Ready Program for Indigenous Tourism is designed to assist Indigenous tourism businesses to ‘start up’ and to increase the potential of existing businesses to commercialise their products and their services. Funding is provided to business mentors to work with Indigenous tourism businesses. In the 2005 – 2006 financial year there were 34 applications of which six were successful. A total of $824,000 was allocated to the Business Ready Program for Indigenous Tourism and six business mentors were funded under the program. 

THE DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY (DAFF)

The Department of Agriculture, Fisheries and Forestry administer two programs:

• New Industries Development Program
• Australian Government Envirofund (also known as National Heritage Trust (NHT)). 

The New Industries Development Program is a research and development program aimed at commercialising business ideas. The program has not received any applications from Indigenous groups.

The Australian Government Envirofund aims to help restore and conserve Australia’s environment and natural resources. The Envirofund provides the opportunity and means for community groups to undertake small on-ground projects and assists them to expand environmental management in broader regional areas. In the 2005-2006 financial year there were five applications. Three were successful and they received a total allocation of $91,460. The most common reasons for unsuccessful applications were a lack of understanding of eligibility criteria and incomplete applications.

THE DEPARTMENT OF FAMILIES, COMMUNITY SERVICES AND INDIGENOUS AFFAIRS (FaCSIA)

The Department of Families, Community Services and Indigenous Affairs administers the Community Housing and Infrastructure Program. This program provides funding for housing and housing related environmental health infrastructure in rural and remote areas, community housing in urban and regional areas, and funding assistance to discrete Indigenous communities to establish and maintain essential municipal services and infrastructure. In the 2005-2006 financial year there were 105 applications for funding of which 53 were successful, with a total expenditure of $18,196,771. The most common reason for unsuccessful applications was that requests for funding had not met the application guidelines. Poor governance, un-costed applications and large claims for funding were also contributors to unsuccessful applications.

THE DEPARTMENT OF COMMUNICATION, INFORMATION TECHNOLOGY AND THE ARTS (DCITA)

The Department of Communication, Information Technology and the Arts administers:

• National Arts and Crafts Industry Support Program
• Networking the Nation
• IT Training and Technical Support Program
• Satellite Phone Subsidy Scheme
• Indigenous Broadcasting Program
• Indigenous Telecommunications Program (the Telecommunications Action Plan for Remote Indigenous Communities (TARPIC)).

The National Arts and Crafts Industry Support Program is aimed at increasing coordination at a federal level and to establish a program to provide ongoing operational support to art centres.  In the 2005-2006 financial year there were 102 applications for funding of which 53 were successful, with a total expenditure of $4,249,350. The most common reasons for unsuccessful applications were that requests for funding had not met the eligibility criteria or were not as competitive as other applications.

The Networking the Nation Program assists the economic and social development of rural Australia by funding projects which:

• Enhanced telecommunications infrastructure and services;
• Increased access to, and promote use of, services available through telecommunications networks; and
• Reduced disparities in access to such services and facilities

The IT Training and Technical Support Program aims to make basic information and computer technology (ICT) training and technical support more accessible for people and organisations located in very remote areas of Australia. Funding was allocated to each state and the Northern Territory based on the Australian Bureau of Statistics Accessibility/Remoteness Index of Australia (2001) on the population (14 years and above) living in ‘very remote’ regions of that State or the Northern Territory. Two competitive grant processes conducted in May 2004 and February 2005 resulted in nine projects being funded, with a total expenditure of $17,579,952. The most common reasons for unsuccessful applications were that requests for funding had not met the eligibility criteria or were not as competitive as other applicants.

The Satellite Phone Subsidy Scheme provides financial and strategic assistance to ensure that people residing and working in regional, rural and remote Australia are able to take their place in an information society. In the 2005-2006 financial year there were 69 applications for funding of which 53 were successful, with a total expenditure of $4,124.  The most common reason for unsuccessful applications was that requests for funding had not met the eligibility criteria.

The Indigenous Broadcasting Program provides support program grants, development grants and special project grants related to the establishment of small scale and community-based broadcasting operations with the capacity to retransmit mainstream radio and television services, and locally produced content.  In the 2005-2006 financial year there were 118 applications for funding of which 76 were successful, with a total expenditure of $13,282,202. The most common reasons for unsuccessful applications were that requests for funding did not meet the program guidelines or the low priority of the application.

The Indigenous Telecommunications Program is aimed at improving telecommunication services in remote Indigenous communities and focuses on two sets of disadvantage: the broad socio economic disadvantage; and more specifically, the telecommunications services disadvantage. DCITA funds service providers to establish telecommunications services in identified Indigenous communities. Funding allocation for the 2005-2006 financial year was not provided.21

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES (DOTARS)

The Department of Transport and Regional Services administers the Regional Partnerships Program and the Sustainable Regions Program.

The Regional Partnerships Program provides grant assistance to all remote, rural and regional communities across Australia, with four objectives aimed at achieving self-reliant communities. The objectives are: to stimulate growth in regions through economic and social participation opportunities; improve access to services, support planning and help communities make structural adjustments in regions affected by major economic, social or environmental change. Area Consultative Committees (ACCs) have been established to support applicants, of which 56 operate across Australia.22 The ACCs provide assistance to applicants to understand the objectives and requirements of the program and completion of the application. In the 2005-2006 financial year there were 15 applications for funding of which 13 were successful, with a total expenditure of $1,057,166. The most common reason for unsuccessful applications was that requests for funding did not meet eligibility criteria.

The Sustainable Regions Program identified ten regions across Australia as sustainable regions: Atherton Tablelands (QLD); Cradle Coast (TAS); Campbelltown Camden (NSW); Darling Matilda Way (NSW/QLD) Far North East (NSW); Gippsland (VIC); Kimberley (WA); Northern Rivers North Coast (NSW); Playford Salisbury (SA); and Wide Bay Burnett (QLD). Some of these regions have significant Indigenous populations. In the 2005-2006 financial year there were two applications for funding of which one was successful with a funding allocation of $996,782. Total expenditure for this period was not available. The most common reasons for unsuccessful applications were sustainability, competition issues, or insufficient proponent contributions. 23

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Endnotes