First Nations enrolments in TAFE courses now make up more than 5 per cent of all enrolments, with the federal government saying their Fee-Free TAFE initiative continues to exceed targets.

As of July this year there were 500,000 TAFE enrolments, with 26,500 enrolments being First Nations people - accounting for 5.3 per cent of all enrolments.

This is despite Aboriginal and Torres Strait Islander people accounting for 3.8 per cent of the population.

Speaking exclusively to National Indigenous Times, Labor Senator Jana Stewart said the importance of an education couldn't be underestimated.

"The data tells us that high levels of education are linked to improve health outcomes, better literacy, better health literacy and overall wellbeing," the Mutthi Mutthi and Wamba Wamba woman from North-West Victoria said.

"It leads to better economic opportunities; so not just your employment outcomes, but also your ability to be able to negotiate income and working conditions improve."

Ms Stewart said it was also vitally important to give young mob vision and inspiration for what is possible.

"When you see more Blak nurses or more Blak aged care workers…it just really cements the path about what's possible for you," the Senator said.

"I think setting the bar high for our mob is a really important thing, because I've got every confidence that they reach it every time."

The Senator currently chairs the Joint Standing Committee on Aboriginal and Torres Strait Islander Affairs, taking over from Pat Dodson, where she fronted an inquiry considering barriers and opportunities to support economic prosperity for First Nations people.

The Inquiry into economic self-determination and opportunities for First Nations Australians comes after the release of the Murru Waaruu economic outcomes report, which called for a critical shift in public policy to effectively support the economic empowerment of Indigenous Australians.

Senator Stewart said when it came to the benefits of education, there were no surprises.

"It means you're also able to make more informed decisions about how you preserve and protect culture and cultural knowledge," she said.

"And it also means that…you kind of [are] more empowered and feel more confident in taking on the world."

Originally from Swan Hill on the south bank of the Murray River, the youngest First Nations woman to be elected in Federal Parliament espoused the benefits of TAFE courses, saying she remembers her Nan, Aunties and Uncles completing such qualifications in her former years.

"I think the other factor for me that I think about is that for a long time, our Mob have thought that university and getting qualifications for university have felt unattainable," she said.

"And so then for lots of our mob, they've gone through the TAFE system."

She noted the courses are more accessible, as well as not going for as long as traditional university courses.

"They're not as expensive; and in this case, we're talking about fee-free TAFE. So, it's free," she said.

Furthermore, courses are often run by Aboriginal-Community-Controlled Organisations (ACCOs), allowing prospective future First Nations students the peace of mind that they will receive a culturally safe education.

As a result, many students are being trained by other successful First Nations people who have excelled in their role.

"How deadly is it for our mob to actually be the trained professional in that situation?" Senator Stewart said.