The 2022 Northern Territory Australian of the Year has defended her views on structural racism after a Territory judge suggested present-day racism was not a factor in the over-incarceration of Aboriginal people.

Arrernte woman Leanne Liddle, director of the Northern Territory Aboriginal Justice Unit, was named the Territory's Australian of the Year for her role in delivering the landmark agreement.

Justice Judith Kelly told an August 26 meeting of women lawyers there was "not a lot" the legal system in the Territory could do about domestic violence against Aboriginal women that was not already being done, and said fears of being called racist stifled debate.

The Guardian Australia reported the judge suggested there was a "cultural component" to the violence suffered by Aboriginal women, and talking about the problem was difficult because of "an ideology of supposed anti-racism". which she said was taking on a cult-like influence.

"Some contemporary problems have been caused or contributed to by racism in the past does not mean that they are the result of racism today," Ms Kelly said.

Ms Kelly made reference to Ms Liddle's speech at the Garma festival this year, criticising her of blaming structural racism for the over-representation of Indigenous people in the justice and prison systems.

The Aboriginal Justice Agreement lead by Ms Liddle was based on research, evidence and the experiences and views of Aboriginal people in the Territory collected through 160 consultations.

The historic agreement aims at reducing offending and incarceration of Aboriginal people in the NT.

Ms Liddle said she disagreed with Justice Kelly's comments.

"I stand by my Garma speech, and the overwhelmingly positive feedback I have received since goes to show that these issues strongly resonate with many people in the community," she said.

Earlier this year, Northern Territory Constable Zachary Rolfe was found not guilty of murder, manslaughter and a violent act causing death after killing 19-year-old Kumanjayi Walker in Yuendumu in 2019.

The outcome of the case has been held up as an example of racism in the justice system.

Const Rolfe received a minor injury to his shoulder from a small pair of scissors before shooting Mr Walker three times, including when the Indigenous teenager was pinned to the ground by another officer.

The week after Mr Rolfe was acquitted on all counts, it was revealed he was found to have assaulted an Aboriginal man and lied about it in an earlier case.

This event was subject to one of the 26 suppression orders in place during the murder trial.