The Australian government will work with 15 Indigenous communities who have stepped up to co-design and develop early stage justice reinvestment strategies to tackle over-incarceration.

On Wednesday Minister for Indigenous Australians Linda Burney announced the government's support for community-led, place-based approaches to justice reinvestment at the Joint Council on Closing the Gap meeting in Darwin on Wednesday morning.

In a joint statement with Attorney General Mark Dreyfus and Assistant Minister for Indigenous Australians Malarndirri McCarthy, Ms Burney said the government is "delivering on its commitment to work in partnership with Aboriginal and Torres Strait Islander people on justice reinvestment in First Nations communities".

The work with 15 communities across Queensland, South Australia, Western Australia, Tasmania, ACT and the Northern Territory is part of the government's $81.5 million First Nations Justice package.

The three ministers acknowledged that more than 30 years after the Royal Commission into Aboriginal Deaths in Custody, rates of incarceration of Aboriginal and Torres Strait Islander men, women and young people are "a national shame".

Deputy Lead Convenor Coalition of Aboriginal and Torres Strait Islander Peak Organisations Catherine Liddle noted the importance of local Indigenous leadership in any justice reinvestment strategy.

"To be successful, Justice Reinvestment needs to be driven by our communities from the grassroots up, consistent with the Priority Reforms in the National Agreement," she said.

"We know that the Closing the Gap target relating to incarceration of our adults is worsening. Our people are overrepresented in the criminal justice system, and we need to put an end to it."

In the joint statement, the three ministers said the government is committed to working in partnership with Aboriginal and Torres Strait Islander people to achieve better justice outcomes, in line with targets 10 and 11 of the National Agreement on Closing the Gap.

"Justice reinvestment involves community-led and holistic approaches to keeping at risk individuals out of the criminal justice system. It also includes investment in early intervention and prevention programs and initiatives for at-risk adults and young people," they said.

The government has partnered with three First Nations-led bodies - Ninti One, the Jumbunna Institute for Indigenous Education and Research, and the Justice Reinvestment Network Australia - to "ensure First Nations knowledge sits at the heart of support provided to communities during this first phase of this new national initiative".

Ms Burney said "justice reinvestment in places like Bourke (NSW) has proven to be effective in reducing crime and keeping adults and young people out of custody".

"We are absolutely committed to working in partnership with First Nations communities across the country to keep our people out of prison and youth detention centres," she said.

"We want to make sure young First Nations people have a better future and can reach their full potential."

Senator McCarthy said justice reinvestment is about "community-led and holistic approaches to keep Indigenous people out of the criminal justice system and changing lives for the better".

"First Nations-led organisations understand the needs of their communities best and I'm pleased to see they are at the forefront of rolling out this readiness support. This will ensure justice reinvestment is led by First Nations knowledge and lived experience to help turn the tide on unacceptable rates of reoffending and incarceration," she said.

Justice Reinvestment Network Australia national convenor, Anaiwan woman Alanna Reneman, told AAP that while the term "justice reinvestment" is quite new, the holistic, community-centred approach is a return to the traditional way of working for First Nations people.

"What you're investing in is the way of working, that co-ordination an d collaboration towards shared change, as opposed to emphasis on activities and programs," she said.

"And when we talk about shared ways of working that you're investing in at that local community level, it is about a process of healing the community to return to the way that they traditionally self sustained and governed their own communities prior to colonisation.

"It's a process often of healing through reclamation of traditional ways of working, culture and practices and it's looking at how to heal and reconcile the relationship between government and communities."

The Attorney-General, Mr Dreyfus, said the delivery of community readiness support is a "practical and tangible example" of the government's "commitment to national action to reduce First Nations incarceration and youth detention rates".

"Working in partnership with communities is critical to achieving the targets under the National Agreement on Closing the Gap and is in line with the Government's commitment to implementing the Uluru Statement from the Heart in full," he said.

The communities include:

· Townsville (QLD)

· Minjerribah (North Stradbroke Island) (QLD)

· Mornington Island (QLD)

· Cherbourg (QLD)

· Doomadgee (QLD)

· Katherine (NT)

· Darwin (NT)

· Groote Eylandt (Angurugu, Umbakumba and Milyakburra) (NT)

· Lajamanu (NT)

· Circular Head (TAS)

· Fadden (ACT)

· Newman (WA)

· Port Augusta (SA)

· Ngarrindjeri (Lower River Murray, Lakes and Coorong),

· and "a broader regional approach in South Australia".