The initiative is part of the First Mortgage Removal Program, which began in 2017 as part of the government's self-determination policy.
The change will give Njernda greater independence to plan for the future and improve its facilities for community.
Treaty and First Peoples Minister Natalie Hutchins said the removal was a positive development for Njernda.
“By removing these mortgages, we’re handing back control of important community assets to Njernda so they can decide what’s best for their community,” she said.
“This change will give Njernda the independence to grow and strengthen the vital health and rehabilitation services they deliver for Aboriginal people in Echuca.”
While first mortgages were initially introduced to help Aboriginal organisations purchase properties, they have since hindered their ability to use those properties to grow and create long-term stability.
With a first mortgage in place, organisations were unable to use the property as collateral for new loans or investments to expand their services or develop new programs.
Although they remained responsible for costs such as repairs and maintenance, they were still restricted from making decisions about the property’s use and management.
As a result, organisations have been unable to fully leverage their assets for growth, with much of their potential limited by the terms of the mortgage agreement.
State Member for Northern Victoria Jaclyn Symes welcomed the removal of first mortgages.
“Handing back control of these properties gives Njernda the freedom to plan, invest and make decisions for their community — it’s a practical step towards self-determination,” she said.
Since 2017, 45 of the 59 first mortgages held by the Minister for Treaty and First Peoples have been removed by the Department of Premier and Cabinet.
Work is also under way across government to remove similar encumbrances as part of the government’s work to deliver self-determination and support First Peoples to make decisions on matters that affect them.
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