Economic benefits of closing the gap in indigenous employment outcomes


Economic benefits of closing the gap in Indigenous employment outcomes

Deloitte Access Economics

Addressing the disadvantage experienced by many Indigenous people will have positive impacts on the national economy. Reconciliation Australia asked Deloitte Access Economics to provide a report on this issue.

If Indigenous disadvantage was effectively addressed, the primary benefit of improved life experiences and a better future for Indigenous Australians would be clear. But what about impacts on the national economy and government revenues and spending?

Reconciliation Australia, the national organisation promoting reconciliation between Aboriginal and Torres Strait Islander peoples and the broader Australian community, asked Deloitte Access Economics to look into what alleviating the disadvantage experienced by many Indigenous people might mean in terms of increased economic activity and reduced government outlays.

Key findings

Based on a ‘what if’ style analysis and a hypothetical Australia where Indigenous Australians face the same health and labour market outcomes as other Australians, key findings of the analysis include (by 2013):

  • The Australian economy would be more than 1.15 per cent larger in real terms than would otherwise be the case – a gain of approximately $24 billion in 2012/13 dollars
  • Governments across Australia would experience a net gain of $11.9 billion via increased revenues associated with the broadened tax base created by a larger economy, and a $4.7 billion reduction in expenditure due to lower costs in areas such as health and social security.
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