''The Native Title Act'' 1993 establishes a framework for the protection and recognition of native title. The Australian legal system recognises native title where:
*the rights and interests are possessed under traditional laws and customs that continue to be acknowledged and observed by the relevant Indigenous Australians,
*by virtue of those laws and customs, the relevant Indigenous Australians have a connection with the land or waters,
*the native title rights and interests are recognised by the common law of Australia.
The ''Native Title Act'' sets up processes to determine where native title exists, how future activity impacting upon native title may be undertaken, and to provide compensation where native title is impaired or extinguished. The Act gives Indigenous Australians who hold native title rights and interests—or who have made a native title claim—the right to be consulted and, in some cases, to participate in decisions about activities proposed to be undertaken on the land. Indigenous Australians have been able to negotiate benefits for their communities, including in relation to employment opportunities and heritage protection.
The Act also establishes a framework for the recognition and operation of representative bodies that provide services to native title claimants and native title holders. The Australian Government provides significant funding to resolve native title issues in accordance with the Act, including to native title representative bodies, the National Native Title Tribunal and the Federal Court.〔Department of Foreign Affairs and Trade (Australia), (Indigenous land rights and native title ), retrieved 30 January 2012.〕