The report comes as the Minns Labor Government makes progress on developing a First Nations budget model, designed to provide a holistic, First Nations-led approach to the process, assessment, evidence and reporting for funding and investment decisions impacting First Nations communities.
The Indigenous Expenditure Report fulfills the NSW Government’s commitments under the National Agreement on Closing the Gap to review and classify government expenditure on First Nations people.
It recognises that providing First Nations communities with access to expenditure data is a critical step in building genuine partnership between government and First Nations communities and supporting First Nations self-determination.
The report identifies opportunities to improve outcomes for First Nations people through more effective investment and reviewing the current profile of government expenditure for First Nations people and programs.
NSW is home to 34.5% of Australian First Nations people, more than any other state or territory. At around 340,000 people, this is approximately 4.2% of the NSW population.
In 2023 to 2024, the NSW Government budgeted $1.2 billion for First Nations specific programs and services, making up around 1% of total NSW Government expenditure.
The service areas that are budgeted to receive the largest share of First Nations specific expenditure in 2023 to 2024 include:
- $301.8 million for housing and community amenities
- $237.8 million for education
- $226.3 million for social protection.
The report also quantifies the First Nations share of general (or non-targeted) expenditure. It is estimated in 2021 to 2022 (the latest data available) that the NSW Government spent $5.8 billion on First Nations people across the 18 non-targeted service areas analysed. This represents around 4.9% of total NSW Government expenditure.
The IER transparently shares data and information on government spending to help build genuine partnerships between government and First Nations communities to support better decision making on funding allocations, to improve outcomes for First Nations people and communities.
Findings from the 2023 to 2024 NSW IER will be used by First Nations communities and organisations in partnership with government to consider and design appropriate policy responses and priorities through future budget processes. This will contribute towards NSW progressing action towards Closing the Gap Priority Reform areas and socio-economic outcomes.
With the First Nations budget model design underway, Treasury, Aboriginal Affairs NSW and the NSW Coalition of Peak Organisations are now working in partnership to develop its next steps.
As a starting point, First Nations Impact Assessments were piloted as part of the 2024 t0 2025 budget process. Findings from the pilot will be used to inform the final design of the model.
Get more information on the 2023 to 24 NSW Indigenous Expenditure Report.
Treasurer Daniel Mookhey said:
“We committed to providing regular information about where the NSW government is spending money to help ‘close the gap’ when we signed up to the Closing the Gap targets.
“We fulfil that commitment by publishing this report. First Nations citizens – and all citizens – should have more of the information they need to make better decisions.
“We are the only state or territory to provide a report like this. We hope it helps the rest of the federation partner with First Nation communities to build similar reporting frameworks.”
Minister for Aboriginal Affairs and Treaty David Harris said:
“While the journey to closing the gap still has a significant way to go, I am deeply committed to transforming the way that we work to support self-determined outcomes for First Nations communities to drive better outcomes.”