While not a budget announcement, recent funding announcements for Advancement Indigenous`s strategy have an impact on the sector`s business model. Indigenous organizations received most of the aid – 55 per cent of the total aid. A significant portion of this money supports the provision of front-line services to Aboriginal families and communities. NACCHO calculated a reduction in IAS endowments totalling $1,202,919,558 for essential frontline services, including social emotional welfare services, alcohol and drugs, bringing them home, Men`s Health, Youth and Early Years. In the 2019-20 budget, the Australian government allocated US$5.2 billion to the IAS on a four-year budget up to 2022-23 for managed aid procedures and procurement activities in line with IAS objectives. In accordance with the IAS, beneficiaries sign a single agreement with the Commonwealth, represented by the National Indigenous Australians Agency (NIAA). The main agreement sets out the general conditions for all projects and grants. Based on data provided by the Department, NACCHO found that the highest percentage of funds was allocated to the business sector (53,842,646), or 67% of total resources. Other non-Aboriginal health organizations, churches, charities and non-profit organizations, Business for Profit, Government Departments and Sports Groups, which are not Aboriginal organizations, received 73 per cent of total IAS spending.

NACCHO interviewed (94) Member Services in April, following the release of the IAS financial results. While it is recognized that improvements need to be made, it is also a time to recognize the successes of the IAS and the improvements made by the IAS to dysfunctional and opaque funding arrangements for Aboriginal programs managed by previous governments. This should be used to entrust them with responsibility for the provision of programs and funding rather than public officials. Indigenous Advancement Strategy funds organizations that help them carry out projects or activities that promote equal opportunities for Aboriginal people. In the meantime, we are pleased that the Prime Minister has approved a new COAG partnership agreement to fill this gap, which involves the approval of an Aboriginal assessment of the reduction of this gap after three years. The Committee recommends strategic planning for future tendering procedures, with a clear sense of service gaps and community needs, based on consultations with local services and local communities. A tendering or alternative financing procedure should be implemented in order to improve the capacity of organisations to meet the needs of the Community.