A draft report released by the Productivity Commission this week is calling for mandatory labelling of inauthentic Indigenous art products to better inform consumers and protect First Nations artists.

The report found that while around $250 million worth of Indigenous art was sold in 2019-2020, two thirds of souvenirs sold were inauthentic with no connection to First Nations people.

In a bid to protect the livelihood of First Nations artists, the Productivity Commission has recommended the mandatory labelling of inauthentic art, strengthening supports for artists and reviewing the adequacy and effectiveness of government funding.

Djugun man Commissioner Romlie Mokak says rather than imposing a blanket ban on inauthentic art, a mandatory label would put the onus on producers of fake art.