IBA 2018-23 STRATEGY

IBA’s vision is for a nation where Aboriginal and Torres Strait Islander people are economically independent and an integral part of the economy. We recognise and respect the 80,000+ years of connection Aboriginal and Torres Strait Islander people have with this country and how these connections to land, sea, culture and community should be acknowledged and respected by all Australians.

Below is IBA’s 2018-23 strategy. This strategy represents what we are trying to achieve and how we are going to achieve it.

Sustainable Development Goals

The United Nations Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. There are 17 Goals in total, all of which are interconnected.

The outcomes IBA is striving to achieve impact on many of the SDG’s, but we believe there are three in particularly that are intricately linked to our work:

Closing the Gap Targets

Closing the Gap began in response to a call for governments to commit to achieving equality for Aboriginal and Torres Strait Islander people in health and life expectancy within a generation. It is the story of a collective journey – a shared commitment to empower Aboriginal and Torres Strait Islander people to live healthy and prosperous lives.

There are 16 new Closing the Gap targets in 2020 and IBA’s work strives to contribute to the following:

TARGET 8

By 2031, increase the proportion of Aboriginal and Torres Strait Islander people aged 25–64 who are employed to 62%.

TARGET 9

By 2031, increase the proportion of Aboriginal and Torres Strait Islander people living in appropriately sized (not overcrowded) housing to 88%.

TARGET 15

By 2030, a 15 percent increase in Australia’s landmass subject to Aboriginal and Torres Strait Islander people’s legal rights or interests.

By 2030, a 15 percent increase in areas covered by Aboriginal and Torres Strait Islander people’s legal rights or interests in the sea.

LINE OF INFLUENCE

The Line of Influence represents where IBA's direct attribution to outcomes begins and ends. While IBA's activities contribute towards the elements above the Line of Influence (Sustainable Development Goals & Closing the Gap targets), we do not measure or claim any direct attribution towards their results.

Everything below the Line of Influence encompasses what IBA aims to directly influence and measures ourselves against achieving.

Purpose

IBA’s purpose is set out in the Aboriginal and Torres Strait Islander Act 2005 (the ATSI Act):

  1. To assist and enhance Aboriginal and Torres Strait Islander self-management and economic self-sufficiency;
  2. To advance the commercial and economic interests of Aboriginal and Torres Strait Islander people by accumulating and using a substantial capital asset for the benefit of Aboriginal substantial accumulating and using a and Torres Strait Islander people.

The ATSI Act provides IBA with a number of powers to fulfill its role of engaging in commercial activities and promoting and encouraging Aboriginal and Torres Straits Islander self-management and economic self-sufficiency. This includes powers to provide home loans, business loans and other finance products, as well as the ability to participate in investments, partnerships and joint ventures and act as a trustee to support the accumulation of wealth for Aboriginal and Torres Strait Islander people.

Impact

IBA aspires to create long-term positive impacts on the economic, social and cultural lives of Aboriginal and Torres Strait Islander people. Our products and services are focused on helping Indigenous Australians achieve their dreams of owning their own homes, starting or growing their businesses and investing in their futures.

IBA’s 2018-23 strategy aims to work towards generating the following impacts:

HOUSING

Indigenous home ownership is a norm.

​Indigenous Australians have equivalent levels of wealth from home ownership to non-Indigenous Australians.

BUSINESS

A thriving Indigenous business sector generating income, employment and skills for Indigenous people

Running your own business is as accessible and viable for Indigenous Australians as it is for non-Indigenous

INVESTMENTS

A growing capital asset that continues to support the economic interests of Indigenous people and promote their economic independence

Outcomes

To meet our purpose, IBA will continue to deliver its products and services through its three programs, each of which are supported by a set of performance measures that we believe best demonstrate how IBA is delivering outcomes against its purpose. This approach measures the quantum of services and products we’ve delivered for our customers (outputs), how well we’ve delivered those services and products (the quality and efficiency of what we do) and what the benefits of those services have been (outcomes and impacts).

Our approach to performance measurement is guided by targets set in IBA’s Portfolio Budget Statements (PBS) and our performance outcomes are reported on annually in IBA’s Annual Report.

homes
Business
Investments
IBA
MEASURE #1
Value of home ownership outcomes approved.

2020-21 Target: $125m

2021-22 Target: $150m

​2022-23 Target: $180m

MEASURE #2
Percentage of approved customers that are first home buyers.

2020-21 Target: 90%

​2021-22 Target: 90%

​2022-23 Target: 90%

MEASURE #3
Percentage of Indigenous home customers who transition or are supported into mainstream lending.

2020-21 Target: 4.5%

​2021-22 Target: 4.5%

​2022-23 Target: 4.5%

MEASURE #4
Number of people attending housing capability workshops.

2020-21 Target: 500

​2021-22 Target: 500

​2022-23 Target: 500

MEASURE #5
Percentage of home customers satisfied or very satisfied with IBA's service.

2020-21 Target: 80%

​2021-22 Target: 80%

​2022-23 Target: 80%

MEASURE #6
Cost per dollar lent home loan efficiency ratio.

2020-21 Target: Targets determined

​2021-22 Target: Target to be set in 2021

​2022-23 Target: As above.

MEASURE #7
Four-year survivability of IBA supported business loans customers.

2020-21, 2021-22 and 2022-23 Target: Australian average business survivability by employment category, as reported by the ABS.

MEASURE #8
Value of business finance approved.

2020-21 Target: $45m

​2021-22 Target: $45m

​2022-23 Target: $45m

MEASURE #9
Number of people attending business capability workshops.

2020-21 Target: 500

​2021-22 Target: 500

​2022-23 Target: 500

MEASURE #10
Percentage of business customers satisfied or very satisfied with IBA's service

2020-21 Target: 80%

​2021-22 Target: 80%

​2022-23 Target: 80%

MEASURE #11
Cost per dollar lent home loan efficiency ratio.

2020-21 Target: Targets determined

​2021-22 Target: Target to be set in 2021

​2022-23 Target: As above.

MEASURE #12
Total value of Indigenous co-investments with IBA (cumulative since 1 July 2015)

2020-21 Target: $152m

​2021-22 Target: $162m

2022-23 Target: $172m

MEASURE #13
Five-year average annual portfolio return to Indigenous co-investors

2020-21 Target: CPI+ 3.5%

2021-22 Target: CPI+ 3.5%

​2022-23 Target: CPI+ 3.5%

MEASURE #14
Number of Indigenous co-investor partnerships (cumulative since 1 July 2015)

2020-21 Target: <3%

​2021-22 Target: <3%

​2022-23 Target: <3%

MEASURE #15
Value of goods and services procured from Indigenous suppliers by IBA's subsidiaries and associates.

2020-21 Target: $2m

​2021-22 Target: $2.5m

​2022-23 Target: $3m

MEASURE #16
Percentage of jobs supported by IBA's subsidiaries and associates held by Indigenous Australians.

2020-21 Target: 22%

​2021-22 Target: 23%

​2022-23 Target: 24%

MEASURE #17
Percentage of investors satisfied or very satisfied with IBA's services.

2020-21 Target: 70%

​2021-22 Target: 75%

​2022-23 Target: 75%

MEASURE #18
Asset management expense ratio.

2020-21 Target: <3%

​2021-22 Target: <3%

​2022-23 Target: <3%

MEASURE #19
Value of goods and services procured from Indigenous suppliers by IBA.

2020-21 Target: $4.5m

​2021-22 Target: $4.75m

​2022-23 Target: $5m

MEASURE #20
Implementation of IBA's Impact Framework.

2020-21, 2021-22 and 2022-23 Target: Annual Impact Report published.

Outputs

The outputs listed here provide an overview of the activities IBA does in order to help us achieve our outcomes. This list is not exhaustive and constantly changes as we adapt to respond to what our customers need.

Home loans
Construction loans
Budgeting help
Split loans
Home Ownership Workshops
Business finance
Business support
Leasing
Start-Ups
Business Workshops
Direct
investments
Asset & funds management
Specialised
property
investment
Capability development
Investments Workshops
IBA Strategy
Corporate Plan
Annual Report
Indigenous Procurement Policy
Impact Reporting

Strategic Pillars

IBA’s 2018-23 is guided by five key strategic pillars that guide everything we do and ensure that our activities are aligned in the principles of how we work.

CUSTOMER
SUCCESS

We are deeply invested in the success of our customers. We create products and services designed to help our customers achieve their goals and are committed to continuous improvement.

SMART
MONEY

We are smart with our money to ensure we can assist as many Aboriginal and Torres Strait Islander people now and into the future as possible.

​We are committed to our Indigenous Investment Principles and responsible lending to ensure the best possible outcomes for our customers.

DEADLY
PEOPLE

We are culturally competent, technically capable and committed to getting the best outcome for our customer.

​Our customers know we are invested, informed, connected, responsive and respectful.

STRONG
SYSTEMS

We are committed to building and maintaining strong systems to give our customers a seamless, efficient and simple experience in working with us.

​We are deeply committed to maintaining the safety and security of our customers data and personal information.

PURPOSEFUL
PARTNERSHIPS

We are dedicated to building purposeful partnerships that expand our understanding, reach and effectiveness.

​We are committed to learning and sharing the skills and capabilities of others to help ensure the best outcomes for our customers.

Inputs

IBA is a predominantly self-funding agency, with approximately 90% of funds invested in the Indigenous estate each year coming directly from IBA and only 10% through government appropriations.

​While there are are a broad range of inputs that IBA needs to fulfill our purpose, they can broadly be summarised as an extension of our strategic pillars.

FEEDBACK

Feedback from our customers informs the design of our products and services and also allows us to achieve continuous improvement.

FUNDING

While IBA is funds the majority of our activity through self-generated funds, we are heavily constrained by our access to capital which ultimately heavily restricts the amount of people we can assist.

PEOPLE

All of IBA's successes are ultimately the result of the hard work and dedication of our people. As a relatively small agency, with a capped workforce of 200 people, IBA is always looking for ways to improve the cultural capability and efficiencies of our workforce.

SYSTEMS

As a financial institution with more than $1.6 billion in assets and the personal information of tens thousands of people and businesses, our systems are the foundation of our business.

PARTNERS

IBA's partners and stakeholders play a fundamental role in our understanding of the broad Aboriginal and Torres Strait Islander landscape and our ability to help our customers succeed.