First Nations organisation Children's Ground says Closing the Gap data released this week shows governments are continuing to fail Aboriginal and Torres Strait Islander people.

Released by the Productivity Commission on Wednesday night, nationwide data shows just four of 19 Closing the Gap targets are on track to be met. Of the nine targets reassessed, only one changed but remains off track.

Children's Ground says the latest data adds to a growing body of evidence indicating the National Agreement is falling short of delivering structural reform.

"This reality is killing our people and our culture. Our children continue to be locked up and our families put under enormous stress," Children's Ground chair William Tilmouth said.

"We are years into this agreement, and the pattern is clear. Governments are choosing to maintain systems that harm our children and families."

In the Northern Territory where Children's Ground operates, the situation for First Nations peoples is becoming increasingly stark.

The NT is the worst-performing jurisdiction in the country in respect to Closing the Gap targets, with worsening outcomes across health, education, youth engagement and incarceration.

Life expectancy for women is declining, more children are developmentally off track and imprisonment rates continue to rise.

Children's Ground highlighted four key outcomes for First Nations peoples which continue to worsen: adult imprisonment, children in out-of-home care, suicide rates, and child development.

Mr Tilmouth criticised both the Northern Territory and Federal Government for continuing to delay progress, "even when it comes at no cost to them".

"Children's Ground has secured philanthropic investment to build an intergenerational community centre, youth hub and deliver services for children and young people," he said.

"These works have full community support and approval. We have been waiting over 12 months for the government approval processes.

"Government inertia is risking investment and tangible progress against Closing the Gap outcomes in our communities.

"While this inaction continues, children are being taken away and young people are being locked up."

Children's Ground said the concerning Closing the Gap data "sits alongside recent disturbing developments," including the reintroduction of spit hoods, increased rates of self-harm among children in detention and governments not responding meaningfully to coronial recommendations.

Mr Tilmouth called for government to show more trust in community-led solutions "grounded in evidence and already demonstrating impact".

"The federal government's approach to community partnerships and funding opportunities remains unclear and unreliable as highlighted by the Productivity Commission," he said.

"A recent federal government evaluation confirmed the strength of the Children's Ground model and recommended sustained funding.

"This is a moment for government to show leadership, commitment to reform and to create meaningful partnerships with community for long term change."

Children's Ground urged all governments to take deliberate action and move away from top-down systems "that continue to fail," saying transformational change set out in the Closing the Gap agreement remains unrealised.

"Governments have yet to implement the Priority Reforms in practice, including genuine shared decision making, sustained investment in First Nations-led organisations, and a fundamental shift in how government systems operate," they said.

"It is time to abandon punitive policies and reactive responses that cause further harm and entrench crisis."

On Thursday Northern Territory Minister for Aboriginal Affairs Steve Edgington told National Indigenous Times the NT Government is working with Aboriginal Peak Organisations across the Territory on Closing the Gap initiatives.

"Through health, we are working closely with Aboriginal Community Controlled Health Organisations (ACCHOs) to empower remote communities with health care services including the transfer of Gunbalanya Health Centre to the Red Lily Health Board on 1 July," Mr Edgington said.

"We are also working in partnership with Aboriginal people to empower communities that want a greater say.

"This is creating opportunities for local community members to lead and contribute and enable them to have a more active role in community development and decision-making processes.

"Our message is clear – we want a Territory where Aboriginal voices are not just heard but lead the way, and where control and self-determination are returned to Aboriginal people themselves."

Following the data's release on Wednesday, Federal Minister for Indigenous Australians, Senator Malarndirri McCarthy, said it is "important that state and territory governments all back in their commitments under the National Agreement with actions that will help improve outcomes for First Nations people".