Australia's Indigenous economy has been the subject of increasing attention in recent years, but measurement has remained inconsistent and fragmented. A lack of standardised data has made it difficult for governments, investors and industry to assess its scale and trajectory with confidence.
Indigenous Business Australia has announced the establishment of the Office of the Indigenous Economy, a unit intended to provide a more structured and ongoing approach to measuring Indigenous-led economic activity.
The initiative reflects changes already taking place within the sector. Indigenous enterprise is moving beyond procurement participation towards greater levels of ownership, equity involvement and asset development. As this shift continues, the need for more reliable economic data has become more pronounced.
The Office will monitor and publish information on the size and composition of the Indigenous economy, including investment flows, demographic trends and productivity indicators. Over time, it is expected to contribute to the development of a formal measure of Indigenous GDP, allowing for closer alignment with existing national economic frameworks.
Dr Siddharth Shirodkar has been appointed as Chief Economist for the Indigenous Economy. His role will involve developing the methodologies and datasets required to move from periodic estimates to more consistent and comparable forms of measurement.
The Office will work with the Australian Bureau of Statistics and an advisory panel that includes Vanessa Elliot, Professor Deen Sanders, Professor Kerry Arabena, Alan Oster and Professor Doug McTaggart. Its function will extend beyond data collection to establishing a framework for interpreting and applying the information produced.
For IBA Chair Darren Godwell, the initiative is linked to a broader focus on strengthening Indigenous participation in capital markets. Previous commentary has pointed to the importance of ownership, access to finance and long-term asset growth as key factors in the next phase of development for Indigenous businesses.
The economic context is substantial. The Indigenous estate is estimated to cover around 70 per cent of Australia's landmass, with approximately 20 per cent under direct Aboriginal and Torres Strait Islander ownership. A significant proportion of future resource and infrastructure development is expected to occur on this land.
Despite this, there is limited clarity around how economic value is generated and retained within Indigenous communities. Earlier efforts to measure the sector have been intermittent and varied in approach, contributing to an incomplete national picture.
Consistent datasets will assist in informing policy development, supporting investment decisions and providing a clearer basis for evaluating economic activity.
For Indigenous businesses improved measurement will also support efforts to secure financing and participate in larger-scale projects, particularly where equity and long-term returns are a focus.
The establishment of the Office of the Indigenous Economy introduces a more formal mechanism for tracking Indigenous economic activity. Its longer-term impact will depend on how the data is adopted and applied across the broader economic system.
