First Nations Economics analysis says federal Budget delivers $1.31 billion in Indigenous-specific measures but leaves structural reform unresolved

A First Nations Economics analysis of the 2026-27 federal Budget says the Commonwealth has delivered significant targeted investment for Aboriginal and Torres Strait Islander communities while leaving major structural reform issues unresolved.

The analysis, led by Associate Professor Rick Macourt for First Nations Economics, identifies about $1.31 billion in Indigenous-specific measures across the Budget, including a $793.7 million Closing the Gap package over five years.

The largest First Nations-specific measure is a $299 million expansion of the Remote Jobs and Economic Development (RJED) program, which is expected to support an additional 3,000 jobs in remote communities and bring the number of remote jobs to 6,000 by the end of the decade.

Other major measures include $144.1 million for Aboriginal Community Controlled Health Service infrastructure upgrades, $53 million for remote renal dialysis services and workforce accommodation, and $44.4 million to expand Birthing on Country programs.

Treasurer Jim Chalmers told Parliament the Government was investing “an extra $1.2 billion to close the gap” including “doubling the number of jobs created as part of the Remote Jobs and Economic Development (RJED) program” and “improving the housing quality and expanding our support for grocery stores in remote First Nations communities”.

The First Nations Economics analysis notes the Budget coincides with changes to the Indigenous Procurement Policy, including strengthened eligibility requirements taking effect from July 2026.

The new requirements will require businesses to be at least 51 per cent First Nations owned and controlled. Supply Nation and the National Indigenous Australians Agency have been working with the Department of Finance on the transition.

First Nations Economics said the reforms were intended to improve integrity and ensure procurement benefits reach genuine First Nations businesses but also raised broader questions about how governments measure Indigenous economic benefit.

The report argues that Aboriginal community-controlled organisations, not-for-profits and hybrid enterprises also generate economic value through local employment, training, service delivery and reinvestment into community outcomes.

The analysis concludes that the Budget represents meaningful operational investment, particularly where funding supports Aboriginal-led and community-controlled delivery, but identifies persistent gaps in structural reform around economic self-determination, treaty processes and revenue-sharing arrangements.

The Budget invests $265.6 million in Northern Territory remote housing in 2026-27 as part of a 10-year joint venture with the NT government. A further $100 million is earmarked for remote Indigenous housing as part of the Housing Australia Future Fund, split evenly between the NT, Western Australia, Queensland and South Australia. Another $88 million in the next financial year and $28 million in 2027-28 will be spent improving housing and essential services in homelands communities.

A new $6.3 million investment over three years will establish a national First Nations housing body to represent the interests of Indigenous people in the housing sector.

In the NT, $65.6 million will be spent in 2026-27 on a community safety implementation plan as part of the Northern Territory Remote Aboriginal Investment, alongside $8.8 million for Aboriginal interpreter services.