I’ll never forget the moment at my mother’s group when everything shifted.
My daughter, Shirley Pearl, was just a few months old, and I was sitting in a circle with other new mums, all of us bleary-eyed and navigating the beautiful chaos of first-time parenthood. We were chatting about the juggle—work, study, returning to careers. The conversation drifted to university, and one of the mothers turned to me with what she clearly thought was a supportive comment:
“Well, at least it was easier for you to get into higher education because you’re Aboriginal. Your people get free school, right?”
The room went quiet.
I could feel my face flush, not with embarrassment, but with the weight of yet another conversation I’d need to have. I took a breath and gently corrected her: I wasn’t eligible for any government funding because my parents’ earnings were over the means-tested threshold. Just like hers. Just like any other Australian family’s.
She was genuinely shocked. “But I thought Aboriginal people just get everything handed to them?”
That moment crystallised something I’d known my whole life but had never quite articulated so clearly: the vast majority of Australians have absolutely no idea how government assistance actually works—or who receives it.
And the problem? Most Australians don’t know any Aboriginal people personally. So where do they get their ideas about us? From the media. From politicians. From a narrative that’s been twisted, politicised, and weaponised to create division rather than understanding.
Since the failed Voice referendum, this false narrative has only intensified. It’s become one of the major hurdles in the relationship between Indigenous and non-Indigenous Australians, fanning the flames of a culture war that benefits no one, except those who profit from keeping us divided.
So let’s set the record straight. With facts. With data. And with a bit of sass, because frankly, these myths are exhausting.
Myth #1: Aboriginal People Get “So Much More” Than Everyone Else
Let's start with the big one, the idea that Aboriginal and Torres Strait Islander people are swimming in government handouts whilst the rest of Australia struggles.
Here's what the numbers actually say:
During the Voice referendum campaign the no vote side yelled from the rooftops that the Australian Government spent (adjusting for inflation) $40 billion on government programmes for Indigenous Australians a year.
And this figure is correct, but it includes ALL government spending on Indigenous Australians: Medicare, JobSeeker Payment, Youth Allowance, Family Tax Benefit, Disability Support Pension, Age Pension etc. None of those government programs are only
for Indigenous Australians.
In the 2023–24 federal budget, total expenditure on all Indigenous-specific programs was $5.3 billion. 86.75% less than what the no vote banged on about.
Now let's put that in context: that represents only 0.77% of the total $684.1 billion federal budget.
Less than 1% of Government spending per year is spent on Indigenous-specific programs.
So when someone says Aboriginal people get "special treatment," what they're really saying is:
Aboriginal people use the same public hospitals, send their kids to the same public schools, and access the same Centrelink payments as everyone else.
Shocking, I know. But can you see how the media misrepresents this?
Myth #2: "But Per Capita Spending Is Higher, So Aboriginal People Must Be Getting Extra Benefits"
You've probably heard this one: "The government spends twice as much per Aboriginal person!"
That's technically true. In 2015-16, per capita spending was roughly $44,886 for Aboriginal Australians compared to $22,356 for non-Indigenous Australians.
But here's what that statistic deliberately leaves out:
why.
The Productivity Commission, hardly a bastion of radical Aboriginal activism, attributes 68.5% of this spending gap to two non-preferential factors:
- Greater Need: Higher rates of chronic disease, disability, and unemployment mean Aboriginal people use standard public services (hospitals, Centrelink) more frequently.
- Demographics: The Aboriginal population is significantly younger on average, leading to higher per capita use of universal services like childcare and primary education.
The remaining 31.5% of the spending gap?
That's primarily due to the high cost of delivering basic services in remote areas, where approximately 1 in 5 Aboriginal people live. It simply costs more to provide the same level of healthcare or education to a remote community than it does to a Sydney suburb.
Let me put this another way: if you live in a remote Northern Territory community and need a doctor, that GP probably flies in once a fortnight. The cost of getting that doctor to you, accommodation, flights, locum fees, is exponentially higher than someone in Melbourne walking to their local bulk-billing clinic.
Is that "special treatment," or is it the bare minimum required to provide equitable access to healthcare?
Myth #3: Aboriginal People Get Free Healthcare and Education
This is the one that gets thrown around constantly, that Aboriginal people waltz into hospitals and universities without paying a cent, whilst everyone else foots the bill.
Let's break this down, shall we?
Healthcare
Aboriginal and Torres Strait Islander people have access to Medicare, the same universal health insurance scheme available to all Australian citizens and permanent residents. You know, the one where you swipe your Medicare card and sometimes get bulk-billed?
When we look at age-standardised data, Medicare Benefits Schedule (MBS) expenditure for Aboriginal people is only 0.9 times that of non-Indigenous Australians. In other words, despite having double the burden of disease, Aboriginal people actually receive less Medicare spending per person than the general population. How's that for "special treatment"?
Pharmaceutical Benefits Scheme (PBS) spending? Also lower. $677 per person for Aboriginal Australians compared to $758 for non-Indigenous Australians.
Hospital costs per hospitalisation? $7,555 for Aboriginal patients versus $8,936 for non-Indigenous patients. We actually cost the system less per hospital stay, despite being hospitalised more frequently due to chronic health conditions.
Yes, there are Aboriginal Community Controlled Health Organisations (ACCHOs) that provide culturally safe healthcare. And research shows that every $1 invested in ACCHOs saves between $3.95 and $11.75 in mainstream hospital costs by preventing avoidable admissions.
But free healthcare? No. We access the same Medicare system as everyone else, often with worse outcomes and longer wait times.
Education
Remember that conversation at my mother's group? This is where it gets personal.
Yes, there's a program called ABSTUDY, but it's means-tested, just like Youth Allowance and Austudy. My parents earned too much for me to qualify. Plenty of Aboriginal families are in the same boat.
Non-Indigenous students access tertiary funding through Austudy, Youth Allowance, and the HECS-HELP loan system. Aboriginal students may access ABSTUDY if they meet the eligibility criteria. It's not "free", it's means-tested financial support available to Aboriginal students from low-income families, the same way Youth Allowance is available to non-Indigenous students from low-income families.
The idea that every Aboriginal person breezes through university on the taxpayer's dime is not just wrong, it's insulting.
Myth #4: Remote Communities Get "Extra" Money for Luxury Services
Let's talk about what it actually costs to live in remote Aboriginal communities.
People love to point at infrastructure spending in remote areas and claim Aboriginal people are getting "bonuses." What they conveniently ignore is what that money is actually buying.
The Reality of Remote Living Costs
- Electricity insecurity: In some remote NT communities using prepayment meters, households average 55 disconnections per year because tariffs can be as high as 31 cents per kilowatt-hour (compared to 10 cents in regional SA).
- Water infrastructure: The NT Government recently committed $34 million just to improve water security in 10 remote communities. In Laramba, a single water treatment plant cost $6.8 million—just to remove naturally occurring uranium from the drinking supply.
- Food costs: A "Healthy Food Basket" in remote NT stores is on average 56% more expensive than in district centre supermarkets. A jar of Vegemite can cost over $13. A loaf of bread, $5.
This isn't about "handouts." This is about the fact that delivering the most basic human rights, clean water, power, affordable food, costs exponentially more when you're hundreds of kilometres from the nearest city.
And here's the kicker:
research shows that health spending for Aboriginal people is only about 60% of the amount required under a needs-based formula, leaving an estimated $4.4 billion annual funding gap.
So no, remote communities aren't getting "too much." They're getting far less than what's actually needed.
Myth #5: Aboriginal People Don't Work—They Just Live on Welfare
This is the myth that started this whole article. The one that woman at my mother's group believed. The one that's become louder since the Voice referendum failed.
Let's look at the facts.
As of March 2024, the unemployment rate for Aboriginal people was 12%, compared to 3.9% for non-Indigenous Australians. Yes, that's higher. But do you know why?
- 30% of Aboriginal households live below the poverty line (compared to 12% of the general population)
- The median weekly income for Aboriginal adults is $825, significantly lower than the $1,141 for non-Indigenous adults
- There's a 21 percentage point gap in private sector employment between Aboriginal (41%) and non-Indigenous (62%) Australians
Why does this gap exist?
Decades of systemic disadvantage. Lower educational attainment due to underfunded schools in remote areas. Discrimination in hiring. Lack of jobs in remote communities. Intergenerational trauma from policies like the Stolen Generations.
And here's what people miss: approximately 50% of Aboriginal adults rely on some form of welfare payment. But this isn't because we're lazy or entitled, it's because there are no jobs in many remote areas, and structural barriers prevent equal access to employment opportunities.
When Aboriginal people do access welfare, it's through the same Services Australia (Centrelink) system as everyone else:
- JobSeeker Payment
- Youth Allowance
- Family Tax Benefit
- Disability Support Pension
- Age Pension
Same payments. Same means-testing. Same eligibility criteria.
The Real Story: Where Does the "Aboriginal Money" Actually Go?
Here's the part that should make every Australian angry, not at Aboriginal people, but at the system.
The majority of "Aboriginal funding" never reaches Aboriginal people.
It stays with government departments and mainstream organisations.
In New South Wales, for example,
60.7% of Indigenous-targeted funding goes directly to NSW Government service providers, not Aboriginal-led organisations.
Nationwide, 81.4% to 82% of expenditure on Aboriginal people is for mainstream services. That money pays the salaries of largely non-Indigenous teachers, doctors, and public servants.
Even within Indigenous procurement, there are problems. A 2025 Australian National University study found that 50% of the $7 billion in federal Indigenous procurement contracts went to just 18 businesses. And 30% of the total value ($2.1 billion) was awarded to businesses based in Canberra, home to only 1% of the Indigenous population.
There's also the issue of "Black Cladding", non-Indigenous businesses fraudulently misrepresenting themselves as Indigenous-owned to win contracts, diverting millions away from actual Aboriginal economic empowerment.
Meanwhile, Aboriginal Community-Led Organisations, which deliver the best outcomes, receive a minority share of funding, despite research showing they're significantly more efficient and effective.
This was one of the crucial reasons The Voice to Parliament was needed.
The NDIS Gap: When Funding Exists But Services Don't
Let me introduce you to a concept called "thin markets", a perfect example of how "on paper" funding doesn't translate to real-world support.
Aboriginal people make up 7.9% to 8% of NDIS participants. Sounds reasonable, right?
But here's the catch:
while the national average for using NDIS plan funding is around 78%, Aboriginal participants use only 72%. In very remote areas, that drops to just 52%.
Why? Because there are zero registered providers for essential services like speech therapy or clinical psychology in these areas. The "benefit" exists only as a number on a screen, not as a service the person can actually access.
This is the reality of "Aboriginal welfare" that the media doesn't talk about: funding that never actually reaches the people it's meant to help because the infrastructure to deliver services simply doesn't exist.
Reparations Are Not Welfare
Let's also clarify something important: reparations for the Stolen Generations are not welfare. They're legal settlements for documented past wrongs.
Various states have established redress schemes:
- Territories Stolen Generations Redress Scheme: Up to $75,000 plus a $7,000 healing payment
- South Australia: $20,000 to $30,000 ex-gratia payments
- Tasmania: Statutory compensation for those removed between 1935 and 1975
These are one-off payments to survivors of forced removal policies. Stolen Generations survivors aged 50+ are:
- 3 times more likely to have a severe disability
- 1.8 times more likely not to own their own home
Compensating people for having their childhoods stolen, their languages erased, and their families destroyed is not a "handout." It's the bare minimum of justice.
How the Media Fuels the Myth
The false narrative about Aboriginal welfare is largely driven by media in Australia, where they deliberately blur the lines between:
- Overall welfare spending on all Australians
- The portion that is solely reserved for Aboriginal-specific programs
This blurring is a tactic used to create division. When a headline screams about "billions spent on Indigenous programs," it rarely mentions that 82% of that spending is for mainstream services available to everyone.
The result? Australians who don't know any Aboriginal people personally form their entire understanding of us based on politicised media coverage designed to provoke outrage rather than inform.
What Actually Needs to Change
If we're going to have an honest conversation about Aboriginal welfare, we need to talk about what's actually missing:
- Close the $4.4 billion health funding gap so Aboriginal people receive adequate healthcare based on actual need
- Address the $8.35 billion rural/remote funding shortfall that affects both Aboriginal and non-Aboriginal Australians in regional areas
- Direct more funding to Aboriginal Community-Led Organisations which deliver better outcomes at lower cost
- Create jobs in remote communities so people aren't forced to rely on welfare due to lack of employment opportunities
- Invest in education from early childhood through tertiary to break cycles of disadvantage
- Eliminate "thin markets" in the NDIS and other programs so allocated funding can actually be used
The Bottom Line
Here's what I wish that woman at my mother's group had known, what I wish all Australians understood:
Aboriginal people don't get "everything handed to them." We access the same welfare system as everyone else, often with worse outcomes and higher barriers.
The tiny fraction of the budget that goes to Aboriginal-specific programs is a response to extreme disadvantage created by centuries of dispossession, forced removal, and systemic discrimination.
Most of the money designated for "Aboriginal programs" never reaches Aboriginal communities, it pays for government bureaucracy and mainstream services.
And the real scandal isn't that Aboriginal people receive "too much", it's that despite decades of supposed investment, the gaps in health, education, employment, and life expectancy remain shamefully wide.
So the next time someone tells you Aboriginal people are living high on government handouts, you can gently correct them, just like I did at that mother's group all those years ago.
Because the truth matters. And Aboriginal people deserve better than to be scapegoated for a welfare system we didn't design and don't disproportionately benefit from.
We deserve what every Australian deserves: equal access to healthcare, education, employment, and the opportunity to thrive.
Not special treatment. Just fairness.
Isn't that the core of being Australian?
Resources & References:
- Productivity Commission, Indigenous Expenditure Report: https://www.pc.gov.au/research/ongoing/indigenous-expenditure-report
- Australian Institute of Health and Welfare, Indigenous Health and Welfare: https://www.aihw.gov.au/reports/indigenous-australians/indigenous-health-welfare
- Parliamentary Library, Indigenous Affairs Funding: https://www.aph.gov.au/AboutParliament/ParliamentaryDepartments/Parliamentary_Library
- National Rural Health Alliance, Rural Health Funding Gap Report
- Australian National University, Indigenous Procurement Study (2025)
