New Funding for First Nations Communities Announced Amid Mixed Progress on Closing the Gap

The New South Wales and Australian federal governments have announced new funding allocations for First Nations communities, alongside mixed data on the National Agreement on Closing the Gap—with some targets improving, others regressing, and several showing no significant change.

Federal Funding and Commitments

Prime Minister Anthony Albanese is scheduled to address parliament on Thursday, stating that the government is not contemplating failure regarding the National Agreement on Closing the Gap. He will present an annual report on the agreement, which was reached with the Coalition of Peaks and state and territory governments.

New federal commitments include:

• $299 million to expand jobs in remote communities under the Remote Jobs and Economic Development (RJED) scheme, with a target of 6,000 jobs by 2030
• $144.1 million for upgrades and repairs to community-controlled health clinics
• $44.4 million for Birthing on Country maternal care programs
• $48.3 million for short-term hostel accommodation
• $32.7 million for food storage to assist 75 additional remote stores in managing extreme weather
• $27.4 million to extend subsidies for 30 essential grocery items in remote stores
• $13.9 million for mental health support service 13YARN to extend its operating hours and launch a text message service

The government also disclosed that a $25 billion funding agreement with states and territories reached last month includes $450 million for Indigenous health, comprising $250 million from the Commonwealth and $200 million from the states.

A standalone national plan to address violence against Aboriginal and Torres Strait Islander women and children, supported by $220 million in federal funding over four years, was launched on Tuesday.

NSW State Budget Allocation

The NSW Budget 2024-25 allocates a total of $154 million for First Nations communities.

Key allocations include:

• $45.3 million in new funding for Closing the Gap commitments
• $5 million over two years for planning housing, infrastructure, and living standards improvements
• $2.4 million to support Stolen Generations organisations
• $1.6 million to support Aboriginal business sector growth

State Responses and Criticisms

Nathan Moran, CEO of the Metropolitan Local Aboriginal Land Council, stated that the NSW budget did not allocate funds for processing Aboriginal land claims.

Sean Gordon, CEO of Gidgee Group, described the budget as a "Close the Gap budget" that "lacked innovation, creativity and the opportunity to empower Indigenous communities," noting that communities have limited involvement in decision-making.

Shadow Minister for Aboriginal Affairs Felicity Wilson said stakeholder feedback indicates "a clear gap between what communities are experiencing on the ground and what this Budget provides."

NSW Minister for Aboriginal Affairs and Treaty David Harris stated that Closing the Gap is a top priority and that the government is committed to working with Aboriginal people. He said the Premier's Department is implementing changes for greater alignment to improve outcomes.

Progress on Closing the Gap Targets

According to the latest data, four out of 19 national Closing the Gap targets are on track to be met by 2031. Six targets are showing improvement, while others are regressing or stagnant.

✅ Targets on track for completion:

• Increasing land and sea rights
• Adult employment rates
• Early childhood education enrollment rates

📈 Targets showing improvement:

• The target for 95% of children enrolled in pre-school is anticipated to be achieved when new data is released later this year
• NSW, the ACT, and the Northern Territory have shown progress in reducing children in out-of-home care, despite a national worsening trend
• Western Australia, Victoria, and South Australia are making progress in reducing youth detention, though the national trend remains unchanged from 2016-17 levels

📉 Targets reported as regressing or stagnant:

• Rates of suicide
• Children in out-of-home care (national trend)
• Adult incarceration
• Early childhood development
• Healthy birth weights (have not improved since 2017)
• Youth justice outcomes (have not improved since 2017)

Key Data Points

Indigenous incarceration rates in NSW: As of December 2023, a record 4,452 Aboriginal adults were in custody, representing 34% of the prison population, despite being only 3% of the general population.

Indigenous healthy birth weights: Only 88.9% of Indigenous babies are born at a healthy weight, compared to 93.9% of non-Indigenous babies. This is below the national target of 91%.

Responses from Indigenous and Political Leaders

Scott Wilson, deputy lead convenor of the Coalition of Peaks, stated that closing the gap requires empowering Aboriginal and Torres Strait Islander people and organisations to lead solutions.

Opposition spokeswoman for Indigenous Australians, Kerrynne Liddle, criticised the progress, stating that Closing the Gap targets continue to worsen under the current government and that the lack of family violence data should be prioritized.

Independent Victorian Senator Lidia Thorpe criticised the Closing the Gap framework for lacking enforceability and accountability.

Background and Reviews

• A 2024 Productivity Commission review found that state and federal governments' engagement with Indigenous communities had been "tokenistic."
• A 2023 independent First Nations-led review by the Jumbunna Institute found that Aboriginal community-controlled organisations (ACCOs) were "doing the heavy lifting while at the same time being under-resourced in comparison with government."
• The NSW Auditor-General found in 2023 that Closing the Gap frameworks were not operating effectively.
• The NSW Aboriginal Land Council has threatened to withdraw from Closing the Gap commitments due to proposed changes to the Crown Lands Management Amendment Bill.