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Funding


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The Northern Land Council receives funding from a variety of sources but primarily through the Aboriginal Benefits Account (ABA), which is linked to mining on Aboriginal land.

The ABA funding arrangements allow the Land Councils to operate independent of annual Federal Government appropriations. However, there are strong accountability requirements.

   
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Northern Land Council Funding

 

Under the Aboriginal Land Rights Act, the Federal Government pays into the ABA an amount of money equal to the royalties paid to the Northern Territory and Federal Governments from mining on Aboriginal land. These "statutory royalty equivalents" are distributed by the ABA as follows:

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40% is distributed among the four Northern Territory Land Councils to fund operations required to carry out their statutory responsibilities to look after the land interests of all Aboriginal people in the Northern Territory.

     
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30% is distributed, through the Land Councils, to Aboriginal groups and people in areas affected by mining on Aboriginal land via their royalty receiving organisations.

     
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30% is used for ABA expenses, grants to Aboriginal organisations and to supplement the operational funding to Land Councils.

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Aboriginal Benefits Account

 

The Aboriginal Benefits Account was previously known as the Aboriginal Benefits Reserve and before that, the Aboriginal Benefits Trust Account, which began operations in July 1978.

The ABA is a trust account under the Financial Management and Accountability Act 1997. It is established through Part VI of the Land Rights Act and is administered by an ABA Secretariat - contained within the Northern Territory office of the Aboriginal and Torres Strait Islander Commission (ATSIC) - with the advice of the ABA Advisory Committee. The Advisory Committee is made up of 14 members selected by the Land Councils and a Chairperson appointed by the Federal Minister for Aboriginal Affairs.

The purpose of the ABA is to provide a mechanism for providing funds for the benefit of Aboriginal people in the Northern Territory. Such funds are compensatory in nature and are not intended to substitute for normal government expenditure for Aboriginal development. ABA funds reflect:

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A special right to compensation for traditional owners of land directly affected by mining operations.

     
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A wider entitlement to compensation for loss of land or connected rights and associated disadvantage to Aboriginal people throughout the NT.

     
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The need to provide Land Councils and other Aboriginal bodies providing representation, advice and additional services or assistance with financial support that is insulated from political party machinations and the immediate control of governments.

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Native Title Grants

 

In its role as a representative body under the Native Title Act, the NLC also receives grants from ATSIC to fund native title claims and cases as well as other costs associated with the operation of its Native Title Unit.

In the year to 30 June 2002, the NLC received a total of $3.1 million for its work in the native title area.

The NLC's budgets are approved by the Federal Minister for Aboriginal Affairs and must be accounted for in audited financial statements contained in Annual Reports which are tabled each year in the Federal Parliament.

Over the years, the responsibilities of the NLC towards its constituents have grown. To be able to meet increased and new demands to maintain services, protect land rights, acquire land and help Aboriginal people manage their land, the NLC is continually investigating new opportunities for funding. Currently, the NLC receives some grants from bodies such as ATSIC, the Indigenous Land Corporation and the Natural Heritage Trust.

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