The New South Wales government needs to increase the support for the Aboriginal community-controlled sector in delivering holistic support for people impacted by alcohol and drugs, a new report has found.

Coming after a landmark four-day summit held in Sydney, Griffith and Lismore into ways to reduce drug-related harms, the report also recommended the government cease the use of drug detection dogs and strip searches at music festivals.

Written by the summit's co-chairs, Carmel Tebbutt and John Brogden, it failed to recommend decriminalising the possession of small quantities of drugs despite "substantial support" for the change.

Making 56 recommendations, the report said there needed to be an expansion of culturally safe services for Indigenous communities by "supporting holistic and culturally grounded Aboriginal-led approaches, particularly in mainstream services" and improving "trauma-informed care and support" for First Nations children and parents impacted by drugs, with a particular focus on family rebuilding—especially for Stolen Generations survivors.

It also called for better-funded Indigenous-led prevention and early intervention to help address the high rates of children in out-of-home care (OOHC) as well as "redress the disproportionate harms experienced by Aboriginal people and communities through system improvements that reduce involvement in the criminal justice and out of home care systems".

Regarding decriminalisation, which Health Minister Ryan Park had explicitly ruled out during the summit, the report said there was strong support from both attendees and submitters to remove criminal penalties and focus on a diversionary system that prioritised health rather than a criminal approach to drugs.

However, it stated: "In comments made prior to the drug summit, the premier made it clear he did not believe the government had a mandate for decriminalisation and it was not on the government's agenda."

Rural and regional areas were described by panellists as "facing substantial challenges" with limited resources and insufficient access to care, particularly for Indigenous communities.

"Interactions between drug use and out-of-home care and child protection were mentioned as concerning. There was an emphasis on finding culturally appropriate solutions for Aboriginal people, including staying on Country," it added.

It recommends expanding access to alternative sentencing models for Aboriginal people, including the Walama List, Youth Koori Court, Circle Sentencing and Justice Reinvestment.

Associate Professor and Bardi man, Michael Doyle, and Professor Don Weatherburn PSM, a former Executive Director of the NSW Bureau of Crime Statistics and Research, suggested during the summit the removing of police discretion in the application of diversion and caution schemes, arguing it would "help reduce Aboriginal peoples' contact and pursual through the justice system".

The submitted heard from people with lived experience. A 25–34-year-old Aboriginal female said it was important people were aware of what services are available to them.

"As a 16-year-old I went into [a] drug and alcohol service and told them I was homeless and living on the streets. It's like they ignored that entire part of my story because it was too hard for them, and so they basically wished me well," she said.

"I understand now, as an adult, drug and alcohol services don't help with homelessness, but it would've been gold for them to refer me to [a] service that could assist me and help find me somewhere safe to live."

The recommendation to cease the practice of strip-searching at festivals comes as a class action - brought by Slater and Gordon Lawyers and Redfern Legal Centre (RLC) - to test the legality of the act will take place later year.

RLC Supervising Solicitor Samantha Lee said they welcomed the recommendation, but "to ensure community safety, strip searches and drug detection dogs should be banned permanently".

Between 2017 and 2023, First Nations people made up more than a quarter of all strip searches by NSW Police.

Of the 1532 children aged between 11 and 17 strip-searched by police between 2017 and 2023, 689 (45 per cent) were First Nations, a police accountability dashboard, launched by RLC, revealed. Two of the Aboriginal children strip-searched were just 11 years old.

"Evidence shows that these humiliating and intimidating practices do not make festivals safer; in fact, they often encourage risky behaviors, such as preloading," Ms Lee said.

On Wednesday upon the release of the report, Minister Park said that "not everyone agreed on everything, but we sought to have every voice listened to".

"The government will now carefully consider these findings and respond in due course," he added.