The Federal Government's moves to establish a permanent aged care advocate for First Nations people have been welcomed, with by Stolen Generations advocates arguing it is a significant step towards improving outcomes for ageing survivors.

The government last week introduced legislation to permanently establish an Aboriginal and Torres Strait Islander Aged Care Commissioner, describing the role as a "strong, independent advocate for older First Nations people".

"Older Aboriginal and Torres Strait Islander people are more likely to need aged care, and more likely to need it earlier. We're establishing a permanent Commissioner to help close that gap, and we're listening to community to inform how we do it," Aged Care Minister Sam Rae said.

"This Bill also strengthens protections for older people right across aged care, and keeps the reforms we promised running the way they should after listening to the experiences of older people right across Australia."

The legislation implements a key recommendation of the 2021 Royal Commission into Aged Care Quality and Safety and follows the appointment of interim Aboriginal and Torres Strait Islander Aged Care Commissioner Jodi Cassar, who succeeded Andrea Kelly at the end of last month.

Responding to the announcement, the Healing Foundation, which provides support and advocacy for Stolen Generations survivors, said permanently embedding the role in legislation would help ensure the voices of First Nations people — particularly ageing Stolen Generations survivors — remain central to the aged care system.

Healing Foundation chair Steve Larkin said the position was "critically important for survivors and ensuring their urgent needs are heard by government".

"Too often plans are made at a government level about funding, service provision and policy without proper consultation with the people who are affected most by its decision making," Professor Larkin said.

"Enshrining the commissioner position in legislation will guarantee Aboriginal and Torres Strait Islander people, especially survivors, will have a voice in the aged care sector."

The legislation comes days after the permanent First Nations Children's Commissioner formally commenced her legislated role, while Ms Cassar has begun leading the First Nations aged care commissioner role on an interim basis.

The Gamilaroi woman will build on Ms Kelly's work, including her landmark report, Transforming Aged Care for Aboriginal and Torres Strait Islander People, which was informed by extensive consultation with First Nations communities across the country.

"This is an important opportunity to listen to Aboriginal and Torres Strait Islander communities and work in partnership to strengthen aged care so it is culturally safe, accessible and person-centred," Ms Cassar told National Indigenous Times last month.

Last week, the government also responded to Ms Kelly's recommendations, saying work was underway but acknowledging more remained to be done.

The Healing Foundation argued further reforms were needed, including exempting Stolen Generations redress payments from means testing across all aged care services, removing co-payments for in-home support, and improving access to culturally safe assessments and care.

Professor Larkin said working with Ms Kelly over the past 12 months had demonstrated what could be achieved through direct engagement with survivors and communities.

"This is what makes a real difference — when we are talking about ageing survivors, it is so important they can share their stories and experiences with a safe person," he said.

"We look forward to working with the new interim commissioner...and welcome the government's decision to implement a permanent Commissioner."