The Tasmanian Aboriginal Legal Service says the Productivity Commission's latest Closing the Gap report highlights that more needs to be done to address disadvantage experienced by Indigenous people both in Tasmania and across the nation.

Released on Wednesday night, nationwide data indicates 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.

In responding to the report, Tasmanian Aboriginal Legal Service (TALS) CEO, Jake Smith, said more needs to be done to support Aboriginal youth who come into contact with the state's child protection and youth justice systems.

"In Tasmania, the Productivity Commission Report highlights the rate of Aboriginal children in the child protection system is worsening and the rate of youth in detention remains at a significantly higher rate than non-Aboriginal youth in Tasmania," Mr Smith said.

"The contact Tasmanian Aboriginal youth has with the child protection and youth justice systems must be a focus.

"The Youth Justice Reform Strategy must be implemented in full and without delay."

Highlighting Tasmania's worsening results, Mr Smith said the state needs a long-term focus to support addressing the risk factors that are bringing youth into contact with the justice system.

"Tasmania does not need tougher laws or increased police powers or presence - this is at odds with what the Government has previously promised," he said.

"Everything else is reactionary and will not assist in achieving results."

Since last year's report the national rate of Aboriginal people in the criminal justice system has also increased, with the rate now 15.6 times higher than non-Aboriginal adults.

Mr Smith said the political and media 'tough on crime' rhetoric is clearly not working.

"We need a greater focus on early intervention, prevention and diversion programs to support youth and adults," he said.

"Locking people up does not work, it perpetuates the cycle rather than bringing it to an end. Young people and adults do not stop offending when they have spent periods in detention or prison."

Mr Smith's calls mirror that of respected Tasmanian Elder Rodney Dillon, who told National Indigenous Times in April "locking them up is not the answer".

Mr Dillon said at the time the most important priority must be "stopping kids from staying in that [justice] system".

"If kids do get in the system, we've got to do everything possible to stop them from coming back into it," he said.

"Recidivism is so high in this all around the country, not just here, and if we can break that recidivism, and… if kids do get into trouble, try and address it with the kid, the family."

Mr Smith said long-term sustained investment in programs such as Community Legal Education, Bail Support Programs and Pace-Based initiatives will contribute to improved outcomes.

"Tasmania is a signatory to the National Agreement on Close the Gap and we need the next Government to transform their thinking, take meaningful actions, partner with Aboriginal organisations who support their community or who deliver services to all communities in Tasmania in order to see real change," the Palawa man said.

"This is not simply about the funding allocation our state has around Closing the Gap; this is a whole of government approach that needs to change from what has always been done and rests on the will of the next government to make meaningful change."

Following the report's release, Federal Minister for Indigenous Australians, 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".

The Minister said the reports are an important transparency mechanism and "drive accountability" for all partners to the National Agreement for Closing the Gap.

"I am pleased that nationally we are seeing improvements in 10 of the 15 targets with data," she said.

"However, it is very concerning that we are still seeing outcomes worsening for incarceration rates, children in out-of-home care and suicide.

"That's why I'm working through Joint Council to drive greater action and effort by all governments, in partnership with First Nations people, to turn these targets around."