Partnerships and shared decision making between Indigenous communities and governments is the key to Closing the Gap, according to the peak body for Aboriginal and Torres Strait Islander community-controlled organisations.

It follows the Prime Minister Anthony Albanese's speech at the Garma Festival in North-east Arnhem Land, where he said his government had a fresh focus for Indigenous affairs and the economic empowerment for First Nations people after October's failed referendum and recent revelation that many Closing the Gap targets are not on track.

The Coalition of Peaks, who represent almost 800 Indigenous ACCOs, welcomed the Prime Minister's speech, where he also announced $20 million to build the Garma Institute, a tertiary education centre owned and run by Yolŋu people.

Lead Convenor, Pat Turner, said federal, state and territory governments agreed to a partnership approach when they signed the National Agreement on Closing the Gap in 2020 under then Prime Minister Scott Morrison.

"Aboriginal and Torres Strait Islander people must have a seat at the table when decisions are being made that affect our lives. We know what our communities need. We know what leads to better outcomes," Ms Turner said.

She reiterated what the PM said in February, where he noted the old ways of doing things had failed, arguing these policy partnerships required governments to relinquish some of their power by coming to decisions by consensus with First Nations representatives.

"The partnership will focus on the strengths of Aboriginal and Torres Strait Islander people, communities and organisations, supporting job creation and translating our knowledge, assets, and rights into sustainable benefits," Ms Turner said.

​"This new way of working ensures parties can regularly and directly meet with senior government officials on equal footing, and governments are required to report on progress."

Djawa Yunupingu, chairman of the Yothu Yindi foundation that hosts the Garma festival, called for economic development, and urged the government to address the significant disparity in services for people living in remote Indigenous communities compared to the rest of the country.

Mr Yunupingu thanked the PM before arguing, "we have work to do … we lack the building blocks of a modern society".

Ms Turner said the funding and support for ACCOs would be key to the success of economic development projects that helped First Nations people, and said the government needed to work with Traditional Owners, as well as bodies involved in heritage protection, on renewable energy projects and other economic opportunities involving natural resources.

"The last thing we want to see is funding for training and job creation programs going to organisations which are not led by, and do not fundamentally understand our people," Ms Turner said.

​"We need opportunities for our people to train and upskill on Country, in their communities, so they can take on the jobs their community desperately needs – whether that be in renewable energy, health, education or the care sector."

Ms Turner's comments mirror those of Coalition of Peaks co-convenor, Catherine Liddle, who said after the Closing the Gap data was released on Wednesday there are "still far too many non-Indigenous operated service providers being funded to deliver to our people".

"They are doing so without consideration for what we really need, without the knowledge of how interconnected so many aspects of our lives and culture are, and without the understanding of how our communities and people think and feel," Ms Liddle said.

Opposition spokesperson for Indigenous affairs, Jacinta Nampijinpa Price, who campaigned against the voice referendum many at the festival advocated for, has also argued non-Indigenous fly-in fly-out workers in Indigenous communities were a barrier for Indigenous prosperity.

Ms Turner said creating both jobs and sustainable income streams were key to helping close the gap, arguing this required a "continued focus on the health, education and wellbeing of our people, alongside the creation of economic opportunities".

"All of this must be done in a way that centres the knowledge and experience of Aboriginal and Torres Strait Islander people – governments cannot assume they know what is best for us," Ms Turner said.