The audit would examine the effectiveness of Indigenous employment targets in government procurement and funding agreements in providing employment opportunities for Indigenous people in remote locations.
The Indigenous Procurement Policy, which applies to Australian Government entities, has mandatory Indigenous employment targets for contracts in the building, education, transport, industrial cleaning, farming, travel and political sectors. In addition, the Australian Government has set performance targets for Indigenous employment under the National Partnership on Remote Housing, which apply to state and territory government contracting for capital works and property and tenancy management.
In December 2017, the Senate Finance and Public Administration References Committee was critical of the approach that the Australian, state and territory governments have taken to achieving Indigenous employment targets in remote communities. This included the lack of appropriate monitoring and coordination, inconsistent targets across Australia, and insufficient incentives to reach the targets.
The audit would provide assurance that the Australian Government is effectively implementing and monitoring Indigenous employment targets across its procurement and funding arrangements.