Section 1: Agency overview and resources 225
1.1 Strategic direction statement 225
1.2 Agency resource statement 227
1.3 Budget measures 228
Section 2: Outcomes and program performance 229
2.1 Outcomes and performance information 229
Section 3: Explanatory tables and budgeted financial statements 244
3.1 Explanatory tables 244
3.2 Budgeted financial statements 246
Indigenous Business Australia Section 1: Agency overview and resources
The planned outcome of Indigenous Business Australia (IBA) is stimulating the economic advancement of Aboriginal and Torres Strait Islander peoples.
1.1 Strategic direction statement
IBA’s vision is for a nation in which the First Australians are economically independent and an integral part of the economy. Under its legislation, the Aboriginal and Torres Strait Islander Act 2005, IBA’s purpose is to:
-
assist and enhance Aboriginal and Torres Strait Islander self management and economic self-sufficiency.
-
advance the commercial and economic interest of Aboriginal and Torres Strait Islanders by accumulating and using a substantial capital base for the benefit of the Aboriginal and Torres Strait Islander peoples.
To achieve its purpose, IBA has established four key strategic objectives, under which its specific strategies and performance indicators are grouped:
-
Accumulating an asset base for the benefit of Indigenous Australians. IBA implements an investment strategy aimed at a balanced portfolio generating returns for further investments and economic benefits for Indigenous Australians. These benefits include cash for further investments, improving employment opportunities and using the assets as the basis for developing small business opportunities. Initiatives are also implemented to support and develop the capacity of Indigenous joint venture partners.
-
Facilitating Indigenous Australians’ ownership of sustainable small business. IBA provides: services and support arrangements which enable potential entrepreneurs to build awareness and business skills prior to entering into business; concessional business loans to eligible clients; assistance with business mentoring to clients after entering into business and intensive loan and client aftercare. IBA also facilitates access to other business support services and mainstream finance where appropriate.
-
Bridging the gap in home ownership through concessional home loans and assistance with ongoing loan management and other aspects of home ownership. These services are provided for aspiring Indigenous home owners who cannot access bank loans. IBA also promotes awareness and informed choice of home ownership options and facilitates access to mainstream finance where appropriate.
-
Promoting and encouraging Indigenous Australians' self-management and economic self-sufficiency. IBA maximises the opportunities for Indigenous employment and training through its activities, undertakes or contributes to initiatives that supports the development of Indigenous commercial capacity, and brokers partnerships with the private sector, Indigenous organisations and government to deliver support and services that promote Indigenous economic development.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification
Table 1.1: IBA resource statement—Budget estimates for 2011–12 as at Budget May 2011
Budget measures
Budget measures relating to IBA are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2 IBA 2011–12 Budget measures
Section 2: Outcomes and program performance 2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to Government outcomes over the Budget and forward years.
IBA’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of Indigenous Business Australia in achieving Government outcomes.
Outcome 1
Improved wealth acquisition to support the economic independence of Aboriginal and Torres Strait Islander peoples through commercial enterprise, asset acquisition, construction and access to concessional home and business loans.
| Outcome 1 strategy
IBA utilises a suite of commercially focused Indigenous economic development programs to enhance Indigenous economic self sufficiency. IBA delivers flexible and concessional interest rate loan products and aftercare support to improve Indigenous home ownership in towns and cities and on Indigenous held land. IBA also provides concessional interest rate business loans and business support to increase Indigenous ownership of small to medium sized enterprises. For larger investment projects, IBA brings together private sector partners with Indigenous individuals and groups, co-investing in joint venture projects that provide both commercial returns and a direct transfer of business skills and acumen to Indigenous partners.
IBA offers a holistic approach to Indigenous economic and commercial development which includes close engagement with private sector operators who share the vision of encouraging Indigenous participation in the mainstream economy.
Outcome 1 expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by program.
Table 2.1: Budgeted expenses for Outcome 1
Contributions to Outcome 1
Program 1.1: Equity and Investments
|
Program objective
IBA Investments’ objective is to assist and develop Indigenous Australians to achieve economic independence through direct investment and participation in commercial and joint venture business enterprises.
|
Program 1.1 expenses
Program 1.1 will not receive Government funding, but will cover its operating expenses through prudent management of the investment portfolio.
|
Table 2.1.1: Budgeted expenses for Equity and Investments
Program 1.1 deliverables
A profitable and sustainable investment portfolio that enables our Indigenous partners to participate in the mainstream economy.
|
Program 1.1 key performance indicators
• Return on investment
• Indigenous co-investors in investments
• Profit distribution to Indigenous partners
• Indigenous jobs created or supported by the investment portfolio
|
Equity and Investments key performance indicators targets
Program 1.2: Home Ownership Program
|
Program 1.2 objective
Program 1.2 aims to provide an affordable entry into home ownership for Indigenous people, particularly those on lower incomes. The Home Ownership Program is focused on first home buyers who have difficulty obtaining home loan finance from mainstream commercial lenders. The program’s success is assessed in terms of increasing the percentage of Indigenous people who can be home owners.
|
Program 1.2 expenses
General program administrative expenses should remain constant into the budgeted out years. The interest component of loan repayments has increased since mid 2010 as a result of loan interest rates moving in line with official interest rates and the increasing number of loans as a result of the additional $56 million capital funds transferred into the program in 2010-11. Early loan discharges have decreased, which is a normal consequence in times of economic uncertainty and rising interest rates. The Total Departmental Expenses has decreased as a result of projected changes in the Fair Value impairment write-down on the loan portfolio.
|
Table 2.1.2: Budgeted expenses for Home Ownership Program
Program 1.2 deliverables
The key program deliverable is the provision of new home loans and the management of the home loan portfolio.
|
Home Ownership Program deliverables targets
Program 1.2 key performance indicators
The key performance indicators measure the success of the program in targeting new lending to those applicants who would not normally be able to obtain a home loan from other financial lenders.
|
Home Ownership Program key performance indicators targets
Program 1.3: Business Development and Assistance
|
Program 1.3 objective
IBA works with Indigenous Australians to help them succeed in business. The focus is on the sustainable viability of the business, as distinct from simply getting into business.
This objective is achieved primarily through providing affordable business loans and other support to clients to assist them to successfully enter into business. Support is also provided to existing businesses to grow or improve aspects of their management or performance, thus improving their prospects for long-term success.
|
Program 1.3 expenses
Program expenses are expected to remain relatively constant for the foreseeable future.
|
Table 2.1.3: Budgeted expenses for Business Development and Assistance
Program 1.3 deliverables
The target for this program is to increase the number of Indigenous Australians who succeed in business. The success of this outcome can be assessed through the deliverables in the table below.
|
Business Development and Assistance deliverables targets
Program 1.3 key performance indicators
IBA Enterprises has an integrated suite of products: business loans, business support and economic development initiatives (EDIs). Business loans provide clients with affordable finance. Business support assists clients to plan their proposed business and assess its viability, and to access business management training and mentoring in the critical first year of being in business. EDIs support projects that overcome barriers to Indigenous people owning and operating successful businesses; facilitate the development of business-related skills, knowledge, information and assistance; and research economic opportunities.
|
Business Development and Assistance key performance indicators targets
Program 1.4 objective
Provide incentives and affordable loans aimed at making home ownership a realistic choice for Indigenous people living on community titled land.
|
Program 1.4 expenses
Implementation of the Home Ownership on Indigenous Land (HOIL) Program has been slower than anticipated, due to the complex issues which arise in relation to enabling long term transferable tenure on Indigenous held land and the limited familiarity among remote residents of the benefits and obligations of home ownership. Preparations for home ownership will continue in 2011-12 in the Northern Territory in communities where Township Leases have been finalised and in some Queensland DOGIT communities which will have implemented appropriate policies, procedures and systems that complement the land tenure reforms.
|
Table 2.1.4: Budgeted expenses for Home Ownership on Indigenous Land
Program 1.4 deliverables43
The key program deliverables are the provision of home loans to Indigenous individuals and families on community titled land together with education about and promotion of home ownership and facilitation of the legal and administrative arrangements which enable parcels of land to be offered for sale to individual community members.
|
Program 1.4 key performance indicators44
The key performance indicators are the number of communities actively engaging in the implementation of home ownership and subsequent home lending.
|
Share with your friends: |
