Explained: How much is spent every year on Indigenous people in Australia?

Amidst the rising debates surrounding government spending on Indigenous Australians, recent reports and statements are bringing light to the actual figures. According to the Productivity Commission’s 2017 Indigenous Expenditure Report, the total direct government expenditure on Aboriginal and Torres Strait Islander Australians was estimated at $33.4 billion for 2015-16. Furthermore, a draft of the Productivity Commission report from July 2023 indicates that this figure amounts to ‘tens of billions of dollars’ every year.

Contrarily, misinformation and claims have been circulating around the spending patterns of the National Indigenous Australians Agency (NIAA). Established in 2019, the NIAA plays a crucial role in guiding the prime minister and the minister for Indigenous Australians and orchestrating federal government service delivery and policies regarding First Nations Australians. Former prime minister Tony Abbott recently suggested in a radio interview that the NIAA allocates approximately $30 billion annually on Indigenous programs. However, this claim was promptly countered by an NIAA spokesperson. Records confirm the agency had a budget of $4.5 billion for 2022-23, with a notable $1.6 billion granted through the Indigenous Advancement Strategy (IAS) in the same fiscal year.

While there seems to be confusion surrounding the total expenditure on dedicated Indigenous bodies, it’s evident from the 2017 Productivity Commission report that of the $556.1 billion direct expenditure on all Australians in 2015-16, 6% ($33.4 billion) was channeled towards First Nations people. Interestingly, a considerable portion ($27.4 billion) represents the Indigenous share of mainstream expenditure, which includes costs for services like education, healthcare, and public safety. This figure underscores the fact that a significant part of the funding is aimed at providing First Nations Australians with the same service level that the broader population receives.

As discussions continue and more reports emerge, a clearer picture of Indigenous spending will hopefully emerge, offering a more accurate perspective on this critical issue.

🌐 Sources

pc.gov.au – Indigenous Expenditure Report 2017
aph.gov.au – Indigenous affairs overview
dailymail.co.uk – The truth behind Kamahl’s claim
rmit.edu.au – Tony Abbott is wrong – the NIAA doesn’t spend $30 billion
niaa.gov.au – annual-report-2021-22.pdf