The North Australian Aboriginal Justice Agency has urged the Commonwealth and Northern Territory governments to take "meaningful action on the systemic failures that continue to put Aboriginal children and families at risk".

On Wednesday the Agency (NAAJA) said it will take "many months" before there is "a clear picture of the full circumstances that contributed to the tragic loss of Kumanjayi Little Baby".

NAAJA said the five-year-old's death "occurred in the context of a failed prison system, the absence of consistent transitional and community-based support for people leaving custody, and a chronic housing crisis which leaves children and families without stable homes".

NAAJA Chairperson Theresa Roe said the "narrative to suggest Aboriginal families, communities or organisations are to blame for the tragic events" is "false and misleading".

"Instead, scrutiny and accountability must be directed at the failure of governments to build effective systems that keep families and communities safe," Ms Roe said.

The justice agency said locking people up, even repeatedly, does not ensure community safety, noting that in many cases, repeated time in prison "only exacerbates a person's risk factors", especially without access to rehabilitation, education and programs.

Aboriginal leadership vital to fixing the system

NAAJA argued the NT prison system "has, and continues to, fail to provide effective rehabilitation" and said part of the failure stems from "the unwillingness to implement Aboriginal-designed and led programs that are fit-for-purpose for the overwhelming majority of prisoners, who are Aboriginal".

NAAJA chief executive Ben Grimes said there continues to be a lack of accountability for a prison system that fails to effectively rehabilitate prisoners.

"This is not just a service gap, it is a systemic failure," he said.

Last year, NAAJA noted, the NT Department of Corrections' own reporting identified $9 million in under-spending across programs, because of provider shortages, remote delivery barriers, and restrictions on prisoner movement within correctional facilities.

"We need a justice system that works," Mr Grimes said.

"This NT government likes to talk about being tough on crime, but they consistently fail to understand that 'tough' and 'effective' are not the same thing."

People leaving prison falling 'through the cracks'

The Agency said the lack of supported and transitional housing for people leaving prison, particularly for high-risk repeat offenders, is seriously hampering efforts to prevent re-offending.

The NAAJA Throughcare service, which provides culturally responsive case management and supports for Aboriginal people leaving prison, has identified the lack of accommodation and housing options for people leaving prison as one of the most common problems faced.

NAAJA noted there is an 8-10-year waitlist for public housing in Mparntwe / Alice Springs - exacerbated by the fact people cannot join the waitlist while incarcerated.

Mr Grimes said there is "a direct link between increased prison numbers and lessening community safety" because laws and policies that "unnecessarily overload our criminal justice system" mean there is less time and attention provided for matters "more likely to genuinely impact community safety".

"The more over-stretched the system is, the more likely it is that individuals will fall through the cracks."

NAAJA said the Territory government has significantly increased numbers of people entering the front end of the criminal justice system but failed to account for flow-on impacts of those increased numbers through the rest of the system.

Overcrowding, housing shortage making communities less safe

The Agency also said the Territory suffers from chronic over-crowding and a severe shortage of housing which means children are growing up without access to safe and stable homes.

NAAJA called for an urgent investment in public and Aboriginal controlled housing, an end to over-crowding, and an end to punitive evictions from public housing, noting that over-crowding and lack of stable and suitable housing has long been identified as the most foundational cause of negative social, health and criminal justice outcomes.

'We already know what works and what doesn't'

Ms Roe said another inquiry would be a waste of resources, and that what is needed is fundamental change.

"Aboriginal communities and organisations have consistently called out successive governments for harmful, ineffective and wasteful responses, yet we are consistently ignored," she said.

"We reject any calls for an inquiry or royal commission - we already know what works and what doesn't. Don't waste money on another inquiry. Instead, we call on the Commonwealth government to hold the NT Government accountable for their failed systems and wasteful use of Commonwealth money.

"We call for public money to be used in ways that is supported by evidence and in partnership with Aboriginal people, rather than for short-term political gain."

National Indigenous Times has contacted the NT Justice Minister - Chief Minister Lia Finocchiaro, and Housing Minister Steve Edgington, for comment.