The Royal Commission into Aboriginal Deaths in Custody (RCIADIC) made a range of recommendations to increase economic opportunities for Aboriginal communities and encourage the establishment of Aboriginal enterprises to progress both economic and social development goals. Several reviews of the Enterprise Program found that a failure to clearly distinguish between social and economic objectives of funded initiatives undermined efforts to effectively operate and evaluate the program.

Most community enterprises funded under the Enterprise Program in 1988-89 were community projects. There were often the least commercially viable initiatives but provided the best option for creating employment in areas where no formal labour markets existed, or those that did were inaccessible to Aboriginal people. These initiatives also provided essential community services such as retail stores and transport.

The RCIADIC recognised that there was confusion as to whether Section 17 of the Aboriginal and Torres Strait Islander Commission (ATSIC) legislation permitted the funding of enterprises that were not commercially viable but provided broader social benefits to communities.

The Commissioners were of the view that there was ‘an even greater need to fund enterprises on the basis of social criteria than before’. They advocated for amending the ATSIC legislation to clarify that funding could be provided based on social development criteria.

The Aboriginal and Torres Strait Islander Commission Act 2005 (Cth) was introduced to abolish ATSIC and rename the Aboriginal and Torres Strait Islander Commission Act 1989 (Cth) as the Aboriginal and Torres Strait Islander Act 2005 (Cth). Consequential amendments arising from the abolition of ATSIC Included: transfer of ATSIC’s assets and liabilities to other agencies, the establishment of a new housing fund to be administered by Indigenous Business Australia, and modification of the role of the Office of Evaluation and Audit.