Aboriginal businesses in WA to benefit from new local capability fund rounds

Zak Kirkup Published September 21, 2023 at 10.50am (AWST)

business

WA Government Minister Stephen Dawson. Image: NIT.

The Western Australian government announced this week an allocation of more than $3 million in grants for the state's small to medium businesses, with a noteworthy inclusion aimed specifically at Aboriginal businesses.

Under the new Local Capability Fund (LCF) rounds for the 2023-2024 financial year, the Aboriginal Business Round will support small and medium-sized businesses with majority Aboriginal ownership. These businesses will receive targeted aid to supply goods, services, and works to both the government and the private sector.

Minister Assisting the Minister for State and Industry Development, Jobs and Trade, Stephen Dawson, underlined the broader impact of the LCF.

"This has resulted in more than 2,000 employment opportunities and nearly 250 apprenticeships,' he said.

The Aboriginal Business Round is one of the four rounds of the LCF, which invests a total of $2.2 million. The LCF allows for 50 per cent of eligible costs, up to $50,000 per successful applicant. Businesses must be at least 50% Aboriginal-owned, registered with either the Aboriginal Business Directory Western Australia or Supply Nation and have been in operation for at least 12 months.

This special focus on Aboriginal businesses aims to improve not just the economic strength and resilience of the businesses but also focuses on increasing Indigenous representation in public and private sector contracts.

The initiative aligns with a broader government strategy to increase the competitiveness of local businesses in the bidding process for various contracts. Since its establishment, the LCF has allocated $22.7 million to more than 600 businesses, leading to over $1.05 billion in contract awards.

The LCF Aboriginal Business Round comes on top of consistent commitments from the Western Australian Government to increase the level of Aboriginal business engagement. In 2018, then Treasurer and Minister for Aboriginal Affairs Ben Wyatt introduced the Aboriginal Procurement Policy which prescribed that three per cent of total government contracts must be awarded to Aboriginal-owned enterprises.

That has now been increased to four per cent and has been widely considered one of the most significant drivers of economic growth for Aboriginal businesses in the state.

At the time Mr Wyatt said the policy is "not about handouts," but rather about "giving Aboriginal businesses a fair go."

He has also said that the policy is "about creating a more inclusive economy for all Western Australians".