“This isn’t a trend. It’s a movement.”
Supply Nation CEO Kate Russell recently caught up with PASA to discuss growth, integrity and the real impact of Indigenous procurement.
When Russell talks about Indigenous business, she doesn’t talk in abstractions. She talks in numbers, stories and people.
After almost two and a half years as CEO of Supply Nation, she is overseeing a sector that is maturing fast, diversifying and demanding deeper accountability from everyone involved.
A policy shift and a moment of truth
One of the most significant changes ahead is the planned reform to the Indigenous Procurement Policy (IPP), set to take effect on 1 July.
The headline change is technical but meaningful: the definition of an Indigenous business will shift from 50 percent ownership to 51 percent ownership and control.
“For Supply Nation, it’s a step in the right direction,” Russell says.
“We’ve long had our own intellectual property that is 51 percent owned, managed and controlled.”
She is candid, however, about the complexities this will create, particularly for family-run businesses.
“There’s a real moral and ethical quandary for what we often call the ‘mum and dad’ businesses,” she explains.
“Partners in life, partners in business – being asked to move from 50-50 to 51-49 isn’t just paperwork. It can be confronting, costly and emotionally difficult.”
Of the more than 6,000 Indigenous businesses currently registered, Supply Nation estimates up to 700 may be affected. However, Russell stresses that many will still meet the new criteria once audits are completed.
Growth at scale with growing pains
The numbers behind Indigenous procurement tell a powerful story.
In the last financial year alone, $5.83 billion was spent with verified Indigenous businesses through Supply Nation members, up from $4.6 billion the previous year.
“And over 90 percent of that spend was with small-to-medium businesses,” Russell notes.
But along with rapid growth comes pressure. Businesses are no longer competing only with non-Indigenous suppliers; they’re competing with one another.
“Policies like the IPP have created equity, but they’ve also increased competition,
“Access to capital remains the biggest challenge. Businesses want to scale so they can take on larger, more complex contracts and build long-term sustainability.”
That challenge is compounded by structural disadvantage.
“We don’t always have intergenerational wealth or intergenerational entrepreneurship to draw on,” Russell says. “That matters.”
The next generation has arrived
Despite those barriers, Russell remains optimistic, especially when discussing young entrepreneurs.
“I’m seeing more and more young mob coming through,” she says. “Second-generation business owners. That’s incredibly exciting.”
She recalls a 21-year-old Indigenous business owner attending a Supply Nation tradeshow for the first time.
“It’s intimidating being on a tradeshow floor. His family wanted to make sure he was okay, just like any family would. That’s how our community works. We wrap our arms around the young ones who want to step forward.”
Feedback, trust and the power of reputation
Beyond capital, Indigenous suppliers are asking for something deceptively simple: feedback.
“They want to know what they did right or why they didn’t get the contract, and what they can do differently next time,” Russell says.
She believes this goes both ways.
“The most successful Indigenous businesses give feedback as well. They tell procurers when a process was tricky or unfair, and that matters, because buyers want to be a buyer of choice.”
Russell smiles when she mentions the ‘Koori Grapevine’.
“It’s the most effective communication mechanism in the world,” she says.
“If something happens in our community, people will know about it on the other side of the country very quickly.”
Women leading from the front
One of the most striking trends Russell points to is the rise of Indigenous women-owned businesses.
“Women-led Indigenous businesses make up about 30 percent of our cohort,” she says, “but they received over $1.5 billion in procurement spend last year.”
Even more telling, around two-thirds of contracts over $1 million went to female-owned Indigenous businesses, with many operating in traditionally male-dominated industries such as mining, construction and facilities management.
“These aren’t traditionally ‘feminine’ industries,” Russell says. “So to see Indigenous women performing at that level is significant.”
Measuring what really matters
Russell’s pride is unmistakable when she talks about The Sleeping Giant Rises, Supply Nation’s latest impact report.
The findings are impressive: Indigenous businesses generate $42.6 billion in social value annually, and each dollar of revenue creates $3.66 in economic and social value.
But what matters most to her are the stories behind the data.
“Business owners told us their kids are more likely to finish school, to have better futures,” she says.
“One person said, ‘I could drive a Porsche, but I won’t until everyone in my family and community can.’”
That, Russell says, captures the essence of Indigenous entrepreneurship.
“It’s economic self-determination. Indigenous businesses have the right to operate commercially, and what they do with their profits is their choice.”
Integrity, audits and “black cladding”
On the issue of “black cladding”, Russell is direct.
“It’s fraud,” she says plainly. “Fraud is illegal and should be prosecuted as such.”
“I think one of the challenges we have is that there’s no one definition of black cladding. When we recently led a procurement leaders forum, I posed the question to the group and everyone had a slightly different interpretation.
“So it’s very difficult when we don’t have a shared understanding of what black cladding is or isn’t.”
Supply Nation positions itself as the first line of defence, auditing businesses annually or more frequently when ownership or control changes.
“We audit ownership, management and control, but procurers still need to do their own due diligence. We all have a role to play in maintaining integrity.”
For Russell, integrity underpins the entire system.
“If we don’t protect the credibility of Indigenous business, we undermine everyone.”
What’s next for Supply Nation?
The year ahead is packed with activities, including international delegations to Canada, major trade events across Australia, new research, expanded auditing processes and increased use of automation and AI where appropriate. Russell stresses with “a human eye and a cultural lens applied.”
But the bigger picture is clear.
“Supply diversity isn’t a fad,” she says. “It’s not a trend. It’s a movement and it’s here to stay.”
If the numbers, stories and momentum are any indication, Indigenous procurement is no longer proving its worth. It’s now defining what ‘good’ looks like across Australia.
This article is adapted from a wide-ranging interview conducted by PASA’s Chief Content Creator, Jonathan Dutton and Editor, Samantha Webb, with Kate Russell, CEO of Supply Nation. Content has been condensed and edited for clarity.
Supply Nation’s flagship business event for the Indigenous businesses sector, Connect, will be held this year in Perth (Boorloo). More information can be found here: Connect 2026
