Governments should spend taxpayer’s money on Aboriginal development where it is most needed

Federal State and Territory taxpayer spending on Indigenous Australians increased from $21.9 billion in 2008-09, to $25.4 billion in 2010-11, $30.3 billion in 2012-13 and $33.4 billion in 2019-20. At first glance these figures are startling.

However, these expenditure figures include amounts spent on mainstream services, such as education and health that all Australians receive. It is important to note that Indigenous specific expenditure, covering programs, services and payments targeted at Aboriginal and Torres Strait Islanders, is a far smaller component, estimated to be around $6 billion a year. This is made up of Federal Government expenditure of $3.3 billion, State and Territory Government expenditure of $2.4 billion and Indigenous Own Source Income of $224 million.

The Need for Economic Development

Importantly, very little State and Territory funding was spent on programs and services to increase Indigenous people's economic participation ($17 million) with ACT, SA, TAS and QLD allocating none. Given this relatively low amount it is not surprising that little progress has been made in the key area of Indigenous economic development, which many commentators see as fundamental to the human and social development of Indigenous Australians living in remote regions.

Unfortunately, the Centre for Independent Studies also found that misuse of funds for Indigenous programs is extensive. Currently, a number of organisations delivering Indigenous programs are under investigation for fraud. Duplication and waste is also very common. For example, Roebourne in Western Australia, with a population of 1,150, was found to have 67 local service providers and more than 400 programs funded by both federal and state government. This is a common situation in many remote communities throughout Australia

Not only then does it appear that funding is being targeted away from remote Indigenous areas, but when government moneys are expended, they are subject to high levels of inefficiency, ineffectiveness and potential fraud and corruption.

This is a completely unsatisfactory level of governance being demonstrated by Australian governments and little wonder that only marginal improvements have been recorded in attempts to 'close the gap' between Indigenous Australians living in remote regions and other Australians.

There is also little understanding by Australian government of the importance of economic development for the social and human development of Aboriginal Australians in remote regions.

This will be the focus of the next opinion piece by Roger Steele and Don Fuller.

Summary

Australia is in no position to 'point the finger' at other countries regarding their human rights record given the shocking living conditions Aboriginal people strive to endure in many remote communities in Australia.

The democratic system of government has clearly failed Aboriginal people living within remote communities in Australia.