The federal government has paid tribute to Pat Turner after she announced she will step down as CEO of the National Aboriginal Community Controlled Health Organisation (NACCHO).

The Arrernte and Gurdanji woman, who has led NACCHO since 2016 and will also stand down as the elected leader of the Coalition of Peaks, was recognised by the Albanese government for her "outstanding leadership," noting she had "dedicated her life to the wellbeing and self-determination of First Nations people and communities".

Ms Turner proposed the Closing the Gap Agreement, endorsed by all Australian governments, and throughout her career championed the community-controlled sector while elevating the voices of First Nations organisations in national policy.

"Because of that Agreement, and the unity and collective strength of the Coalition of Peaks, we are beginning to shift the course for Aboriginal and Torres Strait Islander people across the country." Ms Turner said.

"This is my legacy I leave for my people."

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Minister for Indigenous Australians Malarndirri McCarthy thanked Ms Turner for her "decades of service, courage and unwavering commitment to improving outcomes First Nations people".

"Pat is one of those rare leaders who makes you feel seen, heard and challenged, all at the same time. Her strength is matched only by her generosity," she said. "Pat has always brought heart to her work. Even in the most challenging times, she found a way to remind us all of why we do what we do."

The Aboriginal Community Controlled Health sector expanded under Ms Turner's leadership at NACCHO. She highlighted systemic underfunding, including research identifying a $4.4 billion health funding gap, and advocated for sustained investment in community-led primary care.

At the Coalition of Peaks, Ms Turner also played a key role in launching a landmark independent Aboriginal and Torres Strait Islander-led review last year.

Prime Minister Anthony Albanese described Ms Turner as a "formidable advocate", saying Australia is better for her work.

"Her tireless efforts have held governments to account, and she has worked hard to build strong working partnerships with First Nations people," he said. "She leaves her role with our thanks, and with our deep respect."

Writing on social media, Senator McCarthy said Ms Turner's career has been a "remarkable one," but noted the "impact her legacy will have on generations to come is what she should be most proud of".

"Pat has been formidable in her pursuit to Close the Gap of disadvantage as she sat at the table across from Ministers and public servants with the steely resolve that has always driven her," she said.

"Enjoy your retirement Pat, you've more than earned it."

Late Wednesday, the Coalition of Peaks endorsed Donnella Mills, the current NACCHO Chair, as its new Lead Convenor. She will serve until 30 June 2027, when the Coalition will hold an open election for all convenor roles.