The Productivity Commission is calling for new laws to stop the misappropriation of Aboriginal and Torres Strait Islander art and culture, in its final report into Indigenous arts and crafts.
The overall market for Aboriginal and Torres Strait Islander visual art and craft, including souvenirs, is worth upwards of $250 million.
The market for Indigenous-style souvenirs is worth $80 million, yet two out of three products are fake and have no connection to Indigenous people, the report found.
Up to $54 million of that total was being spent on fake souvenirs in 2019-20.
"Inauthentic Indigenous-style products mislead consumers, deprive Aboriginal and Torres Strait Islander artists of income and disrespect cultures," Commissioner Romlie Mokak said.
The report said fake art causes harm and offence by misusing sacred symbols and stories, as well as undermining traditional laws.
Currently two in every three Indigenous souvenirs is inauthentic. Source: Getty / Getty Images
Minister for Indigenous Australians Linda Burney said that needs to change.
She noted that the federal government will "carefully review the recommendations".
Aboriginal artist Leroy Platt paints at the Arts Centre in Lockhart River, an Aboriginal community in far-north Queensland. Credit: Dave Hunt/AAP Image
The commission has called for mandatory disclosure when apparently Indigenous products are made by people who are not Aboriginal or Torres Strait Islanders.
It found this would steer buyers towards more authentic products, and work more effectively than trying to ban fake Aboriginal art.
New laws would also give Traditional Owners legal remedies when their cultural assets are used in arts and crafts without permission.
The commission recommended providing better support to creatives dealing with the art industry, citing examples of unscrupulous behaviour.
It also wants a review to ensure that government funding is being directed where Aboriginal and Torres Strait Islander communities want.
The report noted that art centres, organisations and support services are critical to the industry, but Aboriginal and Torres Strait Islander people are under-represented in management and leadership jobs.
Local artist Nita Yunkaporta (70) paints at the the Arts center in Aurukun, far North Queensland, Cape York. Source: AAP / JONO SEARLE/AAPIMAGE