‘Nothing to lose’ as the referendum nears: Albanese

The proposed voice would offer guidance to the Australian Parliament and government on a range of matters crucial to the social, spiritual, and economic wellbeing of Aboriginal and Torres Strait Islander people.

These include issues such as native title, employment, community development, NDIS, heritage protection, and housing.

Prime Minister Anthony Albanese said: “There is no downside to voting Yes, only upside. There is nothing for Australia to fear, nothing to lose – but so much for us to gain.”

One of the pressing concerns within Indigenous communities is the disparity in the housing market.

According to the Australian Bureau of Statistics (ABS), Indigenous home ownership increased to 42.3 per cent of households in 2021, up from 39.6 per cent in 2016.

However, this figure still lags significantly behind the national average, where 66 per cent of Australians own their homes.

In 2021, 28 per cent (96,647 dwellings) of First Nations households owned their homes with a mortgage and 14 per cent (48,452) owned their homes outright, according to the latest ABS data.

“We have an eight-year life expectancy gap. There are gaps in health and education and housing. We need to do better. And if we listen to people, we will do better,” Mr Albanese said.

“This is about helping a group of Australians, 3 per cent of Australians, it won’t have a direct impact at all on non-Indigenous Australians directly, but it will help them.”

Low-cost Indigenous home loan

To address this gap, low-cost loans such as those supported by Indigenous Business Australia (IBA) aim to help Indigenous people become home owners.

Executive director of people and external relations at IBA, Sean Armistead, explained: “IBA assists First Nation Australians in entering home ownership where they don’t meet mainstream lender criteria.

“This is primarily through deposit and upfront costs as there is no lenders mortgage insurance applicable. We work with our customers to get them to a position where they can transition to mainstream lenders in the future.”

To date, IBA has assisted over 21,000 families in achieving home ownership, through its lower interest rate (around 3 per cent) and supportive structure.

IBA’s full home loan offered to Indigenous Australians covers the full cost of the mortgage if they meet the eligibility criteria.

For those earning between $155,094 and $234,990, IBA can cover 20 per cent of the loan, with the remainder from another lender, under its split loan product.

For example, IBA has partnered with Australian Unity Bank and Bank Australia, both of which have undergone cultural training to ensure a seamless transition for IBA customers seeking home loans.

Similarly, non-bank lender Keystart offers an Aboriginal Home Ownership Scheme with dedicated Aboriginal home ownership teams, full and shared ownership options, low deposit requirements, and no lenders mortgage insurance.

Keystart aims to make affordable home ownership accessible to more Aboriginal and Torres Strait Islanders.

Big 4 falling short

While smaller banks are making strides in offering specific lending products for Indigenous Australians, major banks have been slow to follow suit.

The Australia and New Zealand (ANZ), for instance, doesn’t have a dedicated program tailored for Indigenous Australians, instead directs its customers to its general home loan products.

On the other hand, the Commonwealth Bank (CBA) offers Indigenous banking services, including a dedicated customer service line.

Westpac and the National Australia Bank (NAB) also have Indigenous specialist banking teams, with NAB declaring support for the Voice and advocating for businesses to do the same.

“It is time to recognise the rightful place of Indigenous Australians as the First People of this country, and enable and empower them to participate in shared decision making that impact their communities through the Voice,” NAB chief executive Ross McEwan said.

“Business has a role to play in supporting the financial, career and business aspirations of First Nations people.”

ASIC reveals hefty fees for First Nations

Despite these initiatives, a recent review by the Australian Securities and Investments Commission (ASIC) revealed substantial fees borne by First Nations individuals, emphasising the need for banks to address the financial literacy gap within Indigenous communities.

ASIC’s Better Banking for Indigenous Consumers Project found that First Nations people, were paying up to $3,000 in overdraw fees annually in high-fee transaction accounts.

ASIC said it is actively engaging with banks “to ensure fees are removed”, processes are improved, impacted customers are remediated, and tailored Indigenous services are enhanced.

“Our review is ongoing and we will issue a report later in the year,” it said.

How the Voice will work?

The Indigenous Voice Co-Design report was produced by professors Dr Marcia Langton and Tom Calma, which was a result of 18 months’ worth of consultation with 9,478 people and organisations.

The report recommended the national voice have 24 members, with gender balance structurally guaranteed, spread across the states and territories.

Members would serve four-year terms, with half the membership determined every two years, with a limit of two consecutive terms for each member.

The national voice would have two permanent advisory groups – one on youth and one on disability – and a small ethics council to advise on probity and governance.

[Related: Genuinely hopeful voice will lead to better housing policies]