Abstract: This Indigenous Expenditure Report is the first in a series. It provides estimates of government expenditure on services related to Indigenous and non-Indigenous Australians. These estimates are one element of the evidence base that policy makers need to gain a clearer picture of the impact of government expenditure on Indigenous Australians. Estimating the Indigenous component of expenditure — especially for mainstream services — is a complex exercise with little precedent in the literature. While this report presents the best collective effort of the jurisdictions, there are many data quality and methodological challenges that are yet to be resolved, and this report should be interpreted as a first step. It is likely to take time, and the continuing cooperation of governments and data agencies, before all estimates achieve levels of reliability that enable meaningful reporting for all expenditure areas.