The Western Australian Government' has met its Aboriginal procurement target for the third year in a row.

In the 2020-21 financial year the WA Government awarded 6.5 per cent of its contracts to Aboriginal businesses, exceeding its three per cent target.

According to the 2020-21 Aboriginal Procurement Policy report, the State engaged with 114 Aboriginal businesses, of which 98.6 per cent were WA-owned.

Some 284 contracts were awarded to those business worth more than $136 million.

The highest performing government agencies included the Department of Communities, Education, Main Roads and the Public Transport Authority.

Finance and Aboriginal Affairs Minister Tony Buti said there was a need to support development of the Aboriginal business sector.

"Growing this sector creates better financial outcomes for Aboriginal Western Australians and is part of broader McGowan Government initiatives towards self-determination and inclusion," he said.

"I'm proud of the Aboriginal Procurement Policy's outcomes, which have seen consistent year-on-year growth in WA Government contracting with Aboriginal businesses.

"The policy's strong performance in its first term provided a solid foundation for its expansion into employment and subcontracting targets, which came into effect at the start of 2022."

This comes after BHP revealed in their half-yearly report it had reached its Australian Indigenous employment target three years ahead of schedule.

BHP set out to achieve an eight per cent Indigenous employment rate in Australia by mid-2025 but as of February this year had already achieved 8.1 per cent.

Now in its second term, the APP expanded on January 1, 2022 to include Aboriginal participation requirements to determine certain government contracts need to meet Aboriginal employment or subcontract targets.