The Australian Government has released the Terms of Reference for the second Productivity Commission review of the National Agreement on Closing the Gap, with the review set to examine progress against targets and how governments are funding and delivering the agreement.
The review will assess the outcomes, effectiveness and impact of measures being undertaken by Commonwealth, state, territory and local governments, alongside the Coalition of Peaks. It will also consider progress towards the targets set under the agreement.
A key focus will be government funding and investment. The Productivity Commission has been asked to examine funding arrangements, investment practices and resourcing for the Aboriginal and Torres Strait Islander community-controlled sector.
The review will consider whether government spending is aligned with the National Agreement’s four Priority Reforms and whether current investment practices are supporting their implementation.
The Priority Reforms are intended to change the way governments work with Aboriginal and Torres Strait Islander people and organisations, including through stronger community-controlled services and greater involvement of First Nations people in decisions that affect them.
Treasurer Jim Chalmers said improving outcomes for First Nations people was an issue that extended to economic policy.
“Closing the Gap is all about improving the lives and prospects of First Nations people and that makes it an important focus for the economic portfolios,” Chalmers said.
“Releasing these Terms of Reference will help the Productivity Commission get the work underway.”
Senator Malarndirri McCarthy said the government would continue working with the Coalition of Peaks as well as state, territory and local governments.
“The National Agreement provides a pathway for change for First Nations people and communities, and we are building on what is working,” McCarthy said.
The review will involve consultation with Aboriginal and Torres Strait Islander people, communities and organisations, as well as governments at all levels.
McCarthy said the Productivity Commission review would sit alongside an independent Aboriginal and Torres Strait Islander-led review, with both intended to examine whether partners are meeting their commitments under the agreement.
The Coalition of Peaks, which represents Aboriginal and Torres Strait Islander community-controlled organisations, has called for closer scrutiny of government investment.
Lead Convenor Donnella Mills said the agreement was built around four Priority Reforms and required governments to demonstrate that they were changing how they worked with Aboriginal and Torres Strait Islander communities.
Mills said community-controlled organisations had delivered positive outcomes where governments had established genuine partnerships with them. She pointed to health, housing, education, employment and justice as areas where further change was needed.
She also called for longer-term and flexible funding, along with full implementation of the Priority Reforms.
“Governments must be held to account for delivering on the funding commitments agreed in the Closing the Gap Agreement,” Mills said.
The Productivity Commission will report its findings to the Joint Council on Closing the Gap by late 2027. The review is expected to provide an assessment of both progress towards the agreement’s targets and whether funding and investment decisions are supporting the reforms agreed by governments and the Coalition of Peaks.
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