The objective of the audit was to assess whether Indigenous corporations are being effectively supported and regulated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) is a ‘special measure’ under the Racial Discrimination Act 1975 to give First Nations peoples access to the same opportunities to form and manage corporations as everyone else. Corporations registered under the CATSI Act have billions of dollars in income and assets, employ tens of thousands of people and play a critical role in delivering community services.

The Office of the Registrar of Indigenous Corporations (ORIC) regulates Aboriginal and Torres Strait Islander (Indigenous) corporations. The Chief Executive Officer of the National Indigenous Australians Agency (NIAA) is the accountable authority for ORIC.

There was one recommendation to the Australian Government to issue a statement of expectations (noted by the NIAA); one recommendation to the Department of Finance to improve the whole-of-government guidance (agreed); and one recommendation to the NIAA about performance reporting (agreed in principle). There were two recommendations to the NIAA and ORIC about consideration of risk in compliance planning and evaluation. The NIAA agreed in principle to these two recommendations and the Registrar of Aboriginal and Torres Strait Islander Corporations agreed.

Key findings

• ORIC’s support and regulation of Indigenous corporations under the CATSI Act is partly effective.
• ORIC has largely fit-for-purpose governance arrangements, provides largely effective support to corporations to encourage compliance with the CATSI Act, and is increasing its regulatory response to non-compliance.
• Effectiveness is diminished by declining annual reporting compliance.