Following the passage of legislation last week, the Indigenous Land Corporation (ILC) will receive a minimum Australian Government payment of $45 million each year to continue its important role in purchasing and managing land to benefit Indigenous communities.
This delivers on a 2007 election commitment to provide the ILC with a steady and reliable income stream.
The current funding arrangements had led to erratic annual payments. Over the past five years these payments have ranged from nil to $71.9 million.
The new funding arrangements recognise the ILC’s valuable role in working with Indigenous corporations to deliver economic, environmental, social and cultural benefits to Indigenous people.
The legislation allows additional payments to be made to the ILC where, after the annual payment has been made, the balance of the Aboriginal and Torres Strait Islander Land Account exceeds the real capital value of the Land Account based on 30 June 2010.
The additional payment will be subject to the real capital value of the Land Account being maintained.
An independent review of the effectiveness of the funding arrangements will be conducted after they have been in place for three financial years, and every three years thereafter.
The review will focus on whether the funding arrangements are effective in producing the outcome intended by the amendments.
The ILC was established on 1 June 1995, following the passage of the Native Title Act.
It plays a key role in managing the Indigenous land estate, and has a strong record of successful investments leading to Indigenous economic growth, increased employment and environmental benefits.