KPMG has recognised the potential of Indigenous businesses from the beginning of our reconciliation journey. We are pleased to provide a response to the National Indigenous Australians Agency's (NIAA) Indigenous Procurement Policy (IPP) reform discussion paper.
In December 2021, KPMG launched its fifth Reconciliation Action Plan (RAP) – the third RAP to be acknowledged as ‘Elevate’ by Reconciliation Australia. Our RAP reflects KPMG’s public commitment as a firm to contribute towards reconciliation between Indigenous and non-Indigenous Australians. KPMG recognises, values and respects the diversity of histories, cultures, countries and languages that exist in Aboriginal and Torres Strait Islander communities, and acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of Australia.
KPMG has recognised the potential of Indigenous businesses from the beginning of our reconciliation journey. As a Founding Member of Supply Nation (then AIMSC) we have been committed to socially diverse procurement over many years. Since 2010, we have procured more than AU$7 million worth of goods and services from Indigenous business suppliers.
In FY23/24 to date, KPMG has exceeded its supply chain target of 3 percent, with a performance of 4.73 percent financial year to the end of January 2024.
NIAA Discussion paper
In responding to the NIAA’s discussion paper, KPMG has focused on several of the reform options in the paper. KPMG’s principal recommendations are:
- Major suppliers increase their target procurement spend with indigenous suppliers from 3 percent to 5 percent by 2030.
- Requiring Indigenous businesses with IPP contracts to report Indigenous employment levels and subcontracting, including where the employment is being generated (i.e., metropolitan, regional, rural or remote).
- Strengthening the IPP definition of First Nations business, which would require that an IPP business must be 51 percent First Nations owned, managed and controlled.
- By 2035, business under the IPP should be 100 percent First Nations owned, managed and controlled.
- Development of a formal complaints process to strengthen systems, processes and practises under the IPP.
- Requiring major suppliers under the IPP to take an active role in educating Indigenous businesses in procurement processes and systems.
- Reporting obligations could be enhanced by better access to standardised data from Indigenous businesses.
If you would like to discuss the contents of this submission further, please do not hesitate to reach out.
