Indigenous Business Australia (IBA) and the Centre for Indigenous People and Work (CIPW) at the University of Technology Sydney (UTS) have formed a significant research partnership aimed at quantifying and analysing the pay gap between Indigenous and non-Indigenous Australians. This initiative, which is led by Indigenous voices, seeks to foster a national discussion on economic equality and the Indigenous economy, while also gathering the data necessary for systemic reform in employment and economic policy.
At the heart of this research is the understanding that Indigenous wages are vital not only for the Indigenous economy but also for Australia’s overall economic framework. Fair compensation supports household incomes, enhances community wellbeing, and bolsters national productivity. The research aims to bring attention to the demographic potential of a growing and increasingly educated First Nations workforce. It will also underscore how equitable pay and stable employment can elevate workforce participation and drive economic growth across the nation.
Focus on Employment Equity and Economic Participation
Despite the challenges of societal and market exclusion, many Aboriginal and Torres Strait Islander individuals have historically contributed to the economy as employees in various mainstream industries. Ensuring fair pay and secure employment conditions is essential for strengthening their economic involvement, bridging income disparities, and promoting long-term prosperity.
Professor Nareen Young, Associate Dean for Indigenous Leadership and Engagement at UTS Business School and leader of CIPW, highlighted the project’s commitment to employment equity. She stated, “We know that Indigenous wages matter — not just for individual workers, but for families, communities, and the economy as a whole. By measuring the Indigenous pay gap, we can clearly show how fair pay translates into higher lifetime earnings, stronger superannuation outcomes, and greater intergenerational economic security for Aboriginal and Torres Strait Islander people.”
In addition, Sean Armistead, Deputy Chief Executive Officer of IBA, emphasized the dual importance of understanding pay and employment outcomes along with promoting Indigenous entrepreneurship. He noted, “Supporting Indigenous entrepreneurship remains vital, and so is ensuring Indigenous people are fairly paid for their work across the wider labour market. Because that is the largest single contribution that First Nations people make to the economy.”
Armistead further explained that this research aligns with IBA’s Strategy Towards 2030, which seeks to enhance economic opportunity and financial independence for Indigenous communities.
Aiming for Comprehensive Data and Long-Term Impact
The collaborative research is anticipated to be released in 2026 and will build upon the foundational work of Jobs and Skills Australia and the Australian Bureau of Statistics. This effort aims to provide high-quality, detailed income data that can inform policies and practices aimed at closing the pay gap.
As the partnership between IBA and UTS progresses, it reflects a commitment to not only understanding the current economic landscape for Indigenous Australians but also implementing changes that will lead to a more equitable future. By focusing on the Indigenous pay gap, this initiative has the potential to create lasting benefits that extend beyond individual workers to families, communities, and the national economy as a whole.
