Aboriginal and Torres Strait Islander people have been creating visual arts and crafts for tens of thousands of years.

This practice has evolved into a significant industry, generating income for artists, creating economic opportunities for communities, and preserving and sharing First Nations cultures.

The Aboriginal and Torres Strait Islander visual arts and crafts Study report found in 2019-20, total sales in the sector reached at least $250 million, including $35 million from art centre sales and $80 million from merchandise and consumer products.

Despite this, the financial returns for artists remain modest.

Artists selling through art centres earned an average of just over $3,200, while independent artists earned an average of $6,000.

The industry is also challenged by inauthentic products, which include items created by non-Indigenous people or those using Indigenous Cultural and Intellectual Property (ICIP) without authorisation.

Djugun man and Commissioner, Romlie Mokak previously said "inauthentic Indigenous-style products mislead consumers, deprive Aboriginal and Torres Strait Islander artists of income and disrespect cultures".

"Communities have limited legal avenues to stop their cultures from being used without permission and out of context," he said.

"Mandatory disclosure where products are not made or licensed by an Aboriginal and Torres Strait Islander person would steer consumers toward authentic products and put the compliance burden on those producing fake products, not Aboriginal and Torres Strait Islander artists."

Inauthentic products accounted for up to $54 million in spending in 2019-20, representing over half of all souvenir sales marketed as Indigenous.

These products often displace authentic works, depriving Aboriginal and Torres Strait Islander communities of income and misleading consumers.

They undermine trust in the market, misrepresent First Nations cultures, and prevent traditional custodians from controlling how sacred symbols and motifs are used.

The Productivity Commission's report into the sector identified these issues and proposed a range of solutions to address them.

The report recommended new legislation to provide Aboriginal and Torres Strait Islander Traditional Owners with legal remedies for unauthorised use of their cultural assets.

This would not only protect longstanding cultural practices but also foster artistic collaboration and innovation.

The Commission also proposed mandatory disclosure requirements for non-Indigenous products marketed in Indigenous styles, allowing consumers to make informed choices and reducing unfair competition.

Strengthening art centres and support services for both art centre-affiliated and independent artists was also highlighted as critical for the sector's growth.

The report noted gaps in representation of Aboriginal and Torres Strait Islander people in leadership roles and called for independent evaluation of government funding to clarify priorities and objectives.

The Federal Government has broadly supported the Productivity Commission's recommendations and is implementing several measures through its National Cultural Policy, Revive.

Central to this response is the development of standalone legislation to protect ICIP, addressing unauthorised use of cultural assets and combating fake art, merchandise, and souvenirs.

The government is also reviewing the Indigenous Art Code to strengthen protections for artists and consumers and ensure ethical practices in the market.

Continued investment in art centres and sector organisations will be delivered through the Indigenous Visual Arts Industry Support program, alongside professional development and training to improve ethical treatment of artists and ensure fair returns for their work.

The government's response was prepared in consultation with the National Indigenous Australians Agency, the Attorney-General's Department, as well as other agencies.

Collaboration with Aboriginal and Torres Strait Islander representatives is a central feature of these measures, which also align with the National Agreement on Closing the Gap by prioritising shared decision-making.

In addition to legislative reforms, the government plans to evaluate existing funding programs such as the Indigenous Visual Arts Industry Support program and the National Indigenous Visual Arts Action Plan.

This evaluation, expected by December 2025, will assess how well funding meets sector objectives and identify gaps in support. It will also clarify roles and responsibilities for workforce development, with a focus on increasing Aboriginal and Torres Strait Islander representation in leadership positions.

Strengthening management pathways and addressing barriers to access for independent artists are key priorities.

The report highlighted the importance of transparency in the market, particularly for consumers seeking authentic art.

By introducing mandatory disclosure requirements for non-Indigenous products, the federal government aims to rebuild trust and reduce the prevalence of inauthentic items. These measures, alongside stronger protections for ICIP, will ensure traditional custodians can safeguard their cultural assets.