Indigenous Procurement Policy: MMR Targets and Reporting
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Indigenous Procurement Policy: targets, MMR and the 51% rule

The Commonwealth's Indigenous Procurement Policy sets purchasing targets for government and participation targets for contractors on high value contracts. A new version came out in May 2026, and the test for who counts as an Indigenous business changed on 1 July 2026.

The Obligation
4%
Contract-level Indigenous participation target
EvidenceQuarterly IPPRS progress reports
DeadlineQuarterly via IPPRS
OwnerNational Indigenous Australians Agency (NIAA)
Updated May 2026. Stronger eligibility criteria began on 1 July 2026, with transition arrangements for 2026-27.

What is the Commonwealth Indigenous Procurement Policy?

The Indigenous Procurement Policy is the Commonwealth policy that directs government purchasing to Indigenous businesses. It sets annual purchasing targets, a Mandatory Set Aside for some contracts, and Mandatory Minimum Requirements on contracts of $7.5 million or more in 19 sectors. Contractors commit to 4% Indigenous employment or supplier use at contract level, or 3% at organisation level.

$7.5m
Contract value where MMR starts, GST inclusive
4%
Contract-level MMR target, higher in remote areas
3%
Organisation-level MMR target
3.25%
Commonwealth purchasing target for 2026-27
Who It Applies To

Commonwealth Entities

Non-corporate Commonwealth entities must comply. Prescribed corporate and other corporate Commonwealth entities are encouraged to use best endeavours, and the policy does not apply to grants.

Head Contractors On High Value Contracts

MMR applies to procurement wholly delivered in Australia, valued at $7.5 million or more including GST, where more than half the value is spent in the 19 listed sectors. Building construction and maintenance services is one of them.

Trade Partners And Indigenous Suppliers

A head contractor can meet MMR directly or through subcontracts, so a trade partner (subcontractor) is often asked for workforce and purchasing data. Subcontracts awarded to Indigenous enterprises are captured in the head contractor's quarterly report.

Smaller And Remote Procurements

The Mandatory Set Aside covers all remote procurements and other procurement wholly delivered in Australia valued from $80,000 to $200,000. Indigenous small and medium enterprises get the first chance to show value for money.

What the Commonwealth Indigenous Procurement Policy asks for.

Contract-Level Employment
4%
Average Indigenous share of the full time equivalent Australian-based workforce on the project, by the end of the contract term
Contract-Level Supplier Use
4%
Share of the value of goods and services under the contract awarded to Indigenous enterprises
Contract-Level Combined
4% in total
For example, 1% employment plus 3% supplier use
Organisation-Level Employment Or Supply
3%
Measured across the supplier's Australian-based workforce or Australian supply chain, alone or combined
Remote Components
Above 4%
Contract must deliver significant outcomes in the remote area, having regard to the local market
Indigenous Participation Plan
Required at tender
Shows how targets will be met, current Indigenous employment and supplier use, and any remote delivery
Indigenous Enterprise Test
51% owned and controlled
Or registered with ORIC. In 2026-27 the original 50% ownership test also qualifies
Commonwealth Purchasing Target
3.25% in 2026-27
Applies to government, by volume and value, and rises 0.25 points a year to 4% in 2029-30

What you report, and when.

Quarterly, within the days set in IPPRS (up to 60)

Quarterly Performance Report

To the contract manager, via IPPRS

Within a fixed 14 days

Organisation-Based Report

To the contract manager, via IPPRS

End of contract

Final Performance Assessment

To IPPRS, recorded by the contract manager and visible to future evaluation panels

At least twice a year

Portfolio Contract Reporting

To NIAA, via IPPRS (a government duty, not a contractor one)

Evidence To Keep
  • Indigenous Participation Plan
  • Quarterly Workforce Hours, Total And Indigenous
  • Subcontract And Purchase Register With ABN, Value, Date And Description
  • Direct Or Indirect Flag For Each Purchase
  • Indigenous Business Register Or ORIC Listing For Each Supplier
  • Declaration Of Past MMR Compliance
  • Contract Variations Changing The Target Mix
Where Teams Get Caught

Counting Suppliers On An Old Listing

The 50% ownership test only survives through the transition arrangements, so a supplier that qualifies today may not later. Check which test each Indigenous supplier relies on before you plan the contract's supplier use around it.

Treating The Target As A Year-End Figure

The target is an average over the contract term, but progress is reported every quarter and reviewed by the contract manager. A slow start is visible early, and the final assessment follows you into future tender evaluations.

Applying 4% To A Remote Component

Where part of the contract is delivered in remote Australia, the contract must require outcomes above the minimum in that area. Teams that plan on a flat 4% across the job can miss the higher requirement written into the contract.

In Catchment

How Catchment manages the Commonwealth Indigenous Procurement Policy.

All Four MMR Options As Targets

SocialPro

Adopting the built-in IPP framework generates the Aboriginal/TSI Employment Hours targets (Option 1a Contract at 4, Option 1b Organisation at 3) and the Aboriginal/TSI Business Spend targets (Option 2a Contract at 4, Option 2b Organisation at 3). You switch on the ones your contract elected, and each work package reports against them.

Workforce Hours Sorted By Attribute

SocialPro

MMR asks for total workforce hours and Indigenous workforce hours each quarter. Monthly hours count towards the employment target when the worker is recorded as Aboriginal or Torres Strait Islander, so the two numbers sit side by side, ready for you to enter in IPPRS.

Indigenous Spend Row By Row

SocialPro

IPPRS asks for each enterprise's ABN and name plus the value and date of the purchase. Certified Spend holds one row per invoice with supplier ABN, entity type, certifications such as Supply Nation, value excluding GST and any invoice file you attach. It records the certification and does not check it with the certifier, so the 51% question stays with your team.

The Plan And The Quarterly Filing

GovAssure

The framework adds the Indigenous Participation Plan (IPP Plan), Quarterly MMR Compliance Reports (via IPPRS) and Final Reconciliation Report as document requirements. Keep each revision of your own copy in the Document Register and select the current one when you file it. Lodging in IPPRS stays with you, and the export gives you the record to report from.

Trade Partner Data Before The Quarter Closes

SocialPro

Each trade partner submits a monthly report free of charge, with reminder and overdue emails. The head contractor accepts or sends back each section, and an accepted period closes to the trade partner unless a reviewer reopens it.

Ready To Adopt In Catchment
Commonwealth Indigenous Procurement Policy (IPP) (MMR) 2025
Targets and Commitments
Aboriginal/TSI Employment Hours (Option 1a - Contract)
Aboriginal/TSI Employment Hours (Option 1b - Organisation)
Aboriginal/TSI Business Spend (Option 2a - Contract)
Aboriginal/TSI Business Spend (Option 2b - Organisation)
Documents and Forms
Indigenous Participation Plan (IPP Plan)
Quarterly MMR Compliance Reports (via IPPRS)
Final Reconciliation Report
Commonwealth IPP Indigenous Participation Plan
Quarterly IPPRS Report

Adopting this framework on a project generates these targets and documents. You can edit them to match your contract.

Commonwealth Indigenous Procurement Policy questions.

What are the Mandatory Minimum Requirements under the IPP?

They are Indigenous participation targets written into Commonwealth contracts of $7.5 million or more (GST inclusive) that are wholly delivered in Australia, with more than half the value in one of 19 sectors. The supplier commits to 4% at contract level or 3% at organisation level, through employment, supplier use or a mix of both.

What changed in the Indigenous Procurement Policy in 2026?

An updated policy was released in May 2026. From 1 July 2026 an Indigenous enterprise must be 51% or more First Nations owned and controlled, or registered with ORIC. The 2026-27 financial year is a transition, during which the original 50% ownership test also qualifies.

Is Supply Nation still used to verify Indigenous businesses?

For now, yes. Supply Nation's Indigenous Business Direct lists enterprises meeting the original criteria, and its contract was extended by 12 months during the transition. NIAA ran a market process from 13 August to 18 September 2026 to find a provider that will verify against the strengthened criteria and run a new register.

Can a contractor meet the IPP target with both employment and spend?

Yes. Employment and supplier use can be combined as long as they add up to the target, for example 1% employment plus 3% supplier use at contract level. Targets can also be varied during the contract, with a revised Indigenous Participation Plan agreed with the contract manager.

What happens if a supplier misses its MMR target?

The contract manager assesses final performance in IPPRS at the end of the contract. That assessment can be seen by future evaluation panels, and entities must consider a tenderer's past MMR performance when evaluating tenders. Any further consequence depends on the terms of your contract.

Does the IPP apply to work delivered partly overseas?

MMR does not apply to contracts delivered overseas in whole or in part. An entity may choose to apply it voluntarily to the part delivered in Australia or to the whole procurement, with reporting through IPPRS as a voluntary MMR.

What is the difference between the Mandatory Set Aside and MMR?

The Mandatory Set Aside gives Indigenous small and medium enterprises the first chance at remote procurements and at those valued from $80,000 to $200,000. MMR sits on much larger contracts and asks the winning supplier to meet participation targets while delivering the work.

Connected Obligations
Buy Australian PlanNational (Local Content)Australian Skills GuaranteeNational (Skills & Training)NSW Aboriginal Procurement PolicyNSW (First Nations)Queensland Indigenous Procurement PolicyQLD (First Nations)WA Aboriginal Procurement PolicyWA (First Nations)

Read our related guide

Sources
  1. Indigenous Procurement Policy May 2026 (National Indigenous Australians Agency)
  2. Indigenous Procurement Policy (IPP) (National Indigenous Australians Agency)
  3. Indigenous Procurement Policy is changing (National Indigenous Australians Agency)
  4. IPP Mandatory Minimum Indigenous Participation Requirements factsheet (National Indigenous Australians Agency)

Reviewed 4 November 2026. General information to help you plan reporting, not legal advice. Policies change, so check the current version with the policy owner before you rely on it.

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