Health & Medicine
Voice. Treaty. Truth.
State-based treaties aren’t symbolic - they are the foundation of Indigenous economic self-determination
As Victoria implements its treaty, forthcoming negotiations in other states are a once-in-a-lifetime opportunity to lay the foundation for the economic sovereignty of Indigenous nations
Published 25 September 2025
Victoria has made a history after becoming the first Australian state to table a Treaty Bill in parliament.
The First Peoples of Victoria have negotiated the treaty with the state, marking a key milestone in recognising Indigenous peoples’ rights over their lives, lands and waters.
From the Dhungala of the Yorta Yorta to the seas of the Gunaikurnai, this treaty aims to radically reshape the relationship between First Nations and the Victoria State Government.
With state-based treaties like this in progress across multiple Australian states, it’s important that all Australians understand their significance.
These treaties are not merely symbolic, because Indigenous self-determination is not about rights on paper. They are about enabling Indigenous nations to exercise these rights, in part by creating the conditions for economic independence.
Like all governments, Indigenous nations need strong economies to govern well.
These economies give nations autonomy, rather than having to depend on bureaucratic state funding arrangements. With a sound economic base, Indigenous nations can make rights a reality.
This is what economic sovereignty looks like in practice.
It’s a principle enshrined in the United Nations Declaration on the Rights of Indigenous Peoples, which recognises the right of Indigenous peoples to control their own economic development.
A treaty supports this by forging government-to-government relationships. In turn, this transformation can fundamentally alter a government’s Indigenous economic policy.
Fostering independence
Prior to treaty negotiations, Victoria’s Indigenous policies focused on addressing individual disadvantage. They supported Indigenous people to access education, employment and homeownership.
But while these are important aims, they did not go far enough.
These programs addressed the symptoms of Indigenous peoples’ economic disenfranchisement, not the underlying causes – the ongoing dispossession of lands and waters and state exclusion from economic decision-making.
State governments are currently falling short in addressing the broader need for collective Indigenous self-determination.
A narrow policy focus on individual outcomes encourages assimilation, rather than fostering a nation’s independence.
Indigenous nations, not just individuals, must have the right to control their economic futures.
At this critical juncture, enabling Indigenous economic sovereignty across Australian jurisdictions is possible with a significant shift in strategy.
State-based treaties will mean governments move beyond individual support and instead focus on empowering Indigenous nations to govern their own resources and services.
To understand how this could work, we need only look to the United States government, which has supported Indigenous economic sovereignty for over 50 years.
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Supporting self-determination
The US federal government has a long-standing commitment to fund Indigenous nations directly. As well as supporting self-determination, this model is highly effective at supporting Indigenous peoples’ social and economic development.
There, Indigenous nations run everything from rubbish collection and road maintenance, to legal courts and large commercial enterprises.
They directly provide essential services to their communities, including healthcare, education, and infrastructure, and have established wealth-generating enterprises, like gaming and natural resource management.
In California, the Blue Rancheria nation is running its own electricity microgrids. These grids reduce power bills and provide energy security in a region increasingly prone to climate-induced outages.
It’s an economic initiative that creates jobs and allows profits to be reinvested back into projects that strengthen the Blue Rancheria’s governance and culture.
This model of economic sovereignty works for two reasons.
Firstly, the US government has legislated this commitment to Indigenous economic self-determination. Federal departments support Indigenous nations whenever and wherever they can, which fosters long-term economic independence.
Secondly, Indigenous nations can also consolidate funding from various departments, allowing for more efficient, larger-scale projects.
It reduces red tape and makes it easier for Indigenous nations to thrive economically.
Exercising economic sovereignty
Australian state governments can learn from the US policy model as they embark on treaty negotiations. And Victoria can learn as it now works alongside Indigenous peoples in this new era.
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First, governments must follow through on their commitment to a nation-to-nation relationship in treaty.
In the US, treaties are the bedrock of Indigenous self-determination that guarantee Indigenous nations have the right to govern themselves. Likewise, Australian treaties will ensure that Indigenous peoples’ right to exercise economic sovereignty is not subject to political whims.
Second, state-based treaty and economic policy must focus on collective Indigenous development.
Treaties can offer a secure economic foundation by enshrining rights to land, resources and economic development in law.
While policies to improve rates of employment and homeownership are important, they should be part of a broader strategy supporting Indigenous nations to build their own economic systems predicated on their unique histories and cultures.
Finally, states can consider enhancing existing policies to support Indigenous-owned enterprises.
They are more likely to employ Indigenous people, offer a unique approach to commerce grounded in Indigenous values and foster intergenerational wealth-building.
While government social procurement initiatives and specialist programs are already in place to support them, these policies can expand to ensure Indigenous enterprises thrive on a national and even global scale.
None of this will be easy.
In both the US and Australia, governments have competing priorities, political pressures and bureaucratic inertia. Policy frameworks can be complex and riddled with contradictions.
Even when governments profess support for Indigenous self-determination, they often fail to follow through with actions that align with their commitments.
This is why the forthcoming treaty negotiations offer a once-in-a-lifetime opportunity to permanently reshape state relationships with First Peoples.
If done right, these treaties will not only recognise Indigenous political rights but lay the foundation for the economic sovereignty, empowering Indigenous nations to thrive.
Indigenous peoples have fought for generations to exercise their self-determination in the face of economic exclusion and dispossession.
It is a testament to their resilience that we have entered a new chapter in Victoria’s history, with the possibility of creating a more just and equitable states for all.
Now, armed with knowledge and commitment, we can usher in an era of true economic partnership between the state and Indigenous nations; one built on justice, respect and economic sovereignty.