There are approximately 800 000 Indigenous Australians, representing 3.3% of Australia’s total population. Scientific evidence currently suggests that mainland Australia was first settled by Indigenous peoples approximately 65 000 years ago. Prior to colonisation, there were around 500 clan groups that occupied different territories. The intimate relationship between spirituality, livelihoods, kinship, and place is central to understanding Indigenous Australians. It is the world’s oldest living continuous culture and Aboriginal and Torres Strait Islander peoples make a vital contribution to contemporary Australian society. Indigenous Australians are also important for the future of the national economy. For example, the amount of land with Indigenous ownership and interest has increased significantly in the last 50 years, and now covers approximately half of Australia’s land mass.

Place is a key organising feature of Australia’s Indigenous economy, and better data is needed to inform economic development decision-making at national, regional and local levels. Kinship relations, attachment to land, and strong cultural heritage, shape Australia’s Indigenous economy, offering significant potential for growth in a range of different areas. The population is younger compared to the non‑Indigenous population and a higher proportion is located in predominantly rural regions (48% of the Indigenous population live in predominantly rural regions compared to 17% for the non-Indigenous population). Indigenous Australians are key to unlocking the growth potential of regional economies. However, there are significant inequalities compared to the non-Indigenous population, and these gaps are larger in rural regions. At a national level, the gap in the unemployment rate between the Indigenous and non-Indigenous population is 7 percentage points. In predominantly urban regions unemployment rates for the Indigenous population stand at 15%, versus 7% for the non-Indigenous population, and 21% and 6% in predominantly rural regions. This means that the unemployment gap is 7 percentage points larger in rural regions than in predominantly urban regions. There is significant diversity in well-being outcomes across different types of regions, which emphasises the importance of a place-based approach to policies and implementation. This will need to be informed by better data. Although there have been advances in the statistical framework, further improvements are needed. These include developing better data about Indigenous businesses, empowering Indigenous groups to collect and use data, and the inclusion of Indigenous values and perspectives in statistical frameworks.

The purpose of this study is to provide recommendations to the Australian Government about how to improve economic development outcomes for Indigenous peoples at a local and regional level. There is no simple way to summarise the colonial history and contemporary economic circumstances of Indigenous peoples in Australia. Prior to the arrival of British colonisers in 1788 there were over 500 clan groups in Australia with distinct languages, cultures, livelihoods and trading relationships. Indigenous peoples say they have been in Australia since the land was created. Contemporary western scientific evidence currently suggests that mainland Australia was first settled by Indigenous peoples approximately 65 000 years ago, with Torres Strait Islanders first living and hunting in the islands to the north soon after the islands formed around 7 000 years ago. In the past 50 years, policy changes by Australia governments and evolving jurisprudence have resulted in significant progress in recognising the rights of Indigenous peoples. Australian Governments have committed to working with Indigenous Australians to improve socio-economic outcomes, including to business and economic development. This study, and its recommendations, are within the framework of this overarching commitment.

This chapter presents an overview of the well-being of Indigenous Australians at a national and sub-national level and makes recommendations on how to improve statistical frameworks and data governance. The chapter begins by profiling Indigenous socio-economic and demographic trends. This analysis reveals the challenges for development in rural remote areas, diversity of outcomes across all types of regions, and reinforces the need for a place-based approach to Indigenous economic development policies. The chapter then assesses how to improve the quality of Indigenous statistics and support community-based approaches to indicators and data. This includes coverage of issues such as statistical definitions, business data, incorporating Indigenous values and perspectives into statistical frameworks, and Indigenous data sovereignty.

The objective of this chapter is to provide recommendations to improve the enabling environment for Indigenous economies at a regional and local level. The chapter begins by defining Indigenous entrepreneurship and discusses why geography is important in shaping the possibilities and opportunities for community economic development. It introduces the communities that the OECD engaged with on its fact-finding mission illustrating how Indigenous economic development is understood and prioritised by different local and regional actors. Following, the chapter assesses the main government policies that support Indigenous entrepreneurship and economic development and ends by examining some of the key policy levers that can communities can use to improve access to finance, build business skills and capabilities, and access public procurement markets.

The objective of this chapter is to assess and provide recommendations about supporting the implementation of a place-based approach to Indigenous economic development. The chapter begins by explaining why a place-based approached is central to supporting Indigenous economic development. The following sections discuss three key elements for the effective governance of place-based Indigenous development. These include capacity, skills and networks embedded in local and regional Indigenous institutions, the existence of formal and informal mechanisms that enable local Indigenous institutions to deliver economic development solutions in collaboration with other actors and possibilities for Indigenous institutions to influence policies with different levels of government. The chapter then offers recommendations on how these elements could be supported at both the national and sub-national levels.