Federal Liberal MP Jason Wood has lashed out at the Victorian Labor Government after it was revealed that $382 million has been spent over the past decade negotiating a statewide Indigenous treaty.
Wood posted on social media:
“It’s been revealed that State Labor have splashed $382 million on negotiating a statewide Indigenous treaty. Having Labor in power is sending Victoria bankrupt.”
“The Premier has also stated she is open to compensation which will of course be paid by the taxpayer. This spending spree is just adding to the state debt which is full of cost blowouts on big build projects with no end in sight,” he added, warning that the government’s solution is to “increase taxes” and that struggling businesses would be hit hardest.
The criticism follows new analysis showing the Daniel Andrews and Jacinta Allan Labor governments have directed hundreds of millions towards treaty consultations, with spending dating back to 2016.
It is reported by SkyNews that the state’s Yoorrook Justice Commission, which concluded its final report in early July after four years, labelled the occupation of Victoria as illegal and described the treatment of First Peoples as genocidal. It made 100 recommendations, including financial reparations, tax relief, and finalising the treaty.
Treaty legislation is now expected to be introduced into Parliament later this year. A joint statement by Premier Jacinta Allan and the First Peoples’ Assembly of Victoria confirmed that the long-negotiated deal has been drafted and is ready for the next stage.
“The First People’s Assembly has been the independent, democratically elected body representing First Peoples in the Treaty Process.”
The proposed legislation aims to make the Assembly a permanent, statutory advisory body with decision-making power on matters directly affecting First Peoples, including community infrastructure, heritage, appointments, and cultural programs.
But a new investigation by the Institute of Public Affairs (IPA) found that $382 million has already been spent solely on treaty negotiations – with more likely to follow.
According to The Herald Sun, members of the Treaty Authority, which acts as an independent umpire in the negotiation process, have been paid salaries of up to $388,000 per year. Additional funding went to Indigenous organisations to help prepare briefings and attend consultations.
A government spokesperson declined to confirm to SkyNews the full $382 million figure but said $308 million had been allocated since the 2020–21 budget alone.
IPA Research Fellow Margaret Chambers accused the government of lacking transparency.
“With a Treaty scheduled to be finalised inside the next 12 months, and despite the volume of secret meetings over the past decade, very little is known about what this treaty will entail.”
She added:
“Any Treaty will fundamentally change Victoria’s legal structure and will likely require already financially stretched Victorian taxpayers to pay billions of dollars to activists aligned to the Allan government.”
The IPA said 727 meetings had taken place between the government and Indigenous groups since July 2016, averaging a meeting every 2–3 business days. If the pace continues, the total could reach 968 by mid-2026.
The government and First Peoples’ Assembly maintain the treaty will not override parliamentary power and will not include veto rights, but rather help close the gap by embedding First Peoples’ voices in government decisions.
The joint statement described the treaty as a way “to acknowledge the past and make real, practical change to achieve better outcomes for First Peoples in Victoria.”
The treaty process, hailed by the Productivity Commission as a leading national example, is part of a broader $776 million investment in Indigenous programs over the past decade, including truth-telling initiatives and the establishment of a state Voice.
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