An island in Sydney Harbour is a step closer to being transferred back to traditional owners.

Some $43 million has been committed to restore Me-Mel, also known as Goat Island, after the NSW government inked a memorandum of understanding with a transfer committee.

The group is made up of representatives from local Aboriginal communities, the NSW Government and various departments.

They’ll explore how the island can be used for cultural, tourism and public use.

A research project will also be launched to identify the island’s Aboriginal owners and a strategic business case developed for the…

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