Australia’s Indigenous Procurement Policy, intended to benefit Aboriginal and Torres Strait Islander people, is facing criticism for its lack of tangible economic impact after a decade in operation. Approximately $15 billion has been allocated through the policy, which aims to direct government contracts to Indigenous businesses. However, critics allege widespread “black cladding”—where non-Indigenous businesses falsely present themselves as Indigenous-owned to secure contracts—is undermining the policy’s objectives. This practice effectively diverts funds away from genuine Indigenous enterprises and hinders economic advancement within Indigenous communities. Concerns are rising that the policy is not achieving its intended goal of fostering Indigenous economic empowerment and may even be creating a new form of disadvantage. The policy’s effectiveness is now under scrutiny, with calls for greater oversight and enforcement to prevent fraudulent claims and ensure funds reach legitimate Indigenous businesses.