A landmark plan to address the financial inequity between Indigenous and non-Indigenous Australians has been unveiled.
The framework, which aims to bring about significant change, was launched by the Australian Securities and Investments Commission after extensive consultations with First Nations peoples, financial services industry representatives and well as government and regulators.
It's widely recognised that Aboriginal and Torres Strait Islander people consistently earn lower average incomes from employment and private sources than non-Indigenous Australians, and are more likely to be living on low incomes.
More than one-third of Aboriginal and Torres Strait Islander adults were living in households in the bottom 20 per cent for income in 2016. Meanwhile, 64 per cent of Indigenous adults were living in households in the lowest income quintile in 2016 in very remote areas, compared with 27 per cent in major cities, government figures reveal.
They also reveal that 45 per cent of Indigenous Australians aged 18-64 received a government cash pension or allowance as their main source of income in 2018-19.
The reliance on financial support contributes to poorer health and wellbeing outcomes and increases reliance on government income assistance, according to the Australian Institute of Health and Welfare.
Professor Robynne Quiggin, a Wiradjuri academic at University of Technology Sydney, told ASIC as part of the consultation process that "for generations, First Nations peoples' knowledge and management systems kept this country strong and provided for its people".
"This connection to Country, the values held, the importance of extended family relationships, ongoing practice of ceremony and maintenance of languages make for a particular engagement with financial services," she said.
The consultation process identified four key learning areas, according to ASIC:
- First Nations peoples had unique, established economies before colonisation that continued today and should be understood, respected, and maintained;
- First Nations peoples have been prohibited and excluded from participating in the Australian financial system;
- Financial wellbeing affects all aspects of First Nations peoples' lives; and
- First Nations peoples have many different versions of financial success that need to be accepted and empowered.
The framework highlights how ASIC will use these learnings to inform its work with First Nations consumers. This includes better access to appropriate financial products and services and establishing positive and culturally appropriate experiences when engaging with the financial services industry and other service providers.
ASIC said it has been looking at better ways to communicate with First Nations people in recent years. It established the Indigenous Outreach Program in 2009 to build relationships with Indigenous communities and provide insights to ensure ASIC's engagement is culturally appropriate and sensitive.
