The NSW Aboriginal Land Council will withdraw from state's Closing the Gap framework citing "ongoing failures by the NSW Government to deliver genuine partnership, shared decision-making and accountability" as leading to the decision.
The state land rights peak body pointed to "systemic concerns" about the NSW Government's delivery of Closing the Gap priority reforms in making the decision, which it says is not a withdrawal from Aboriginal advocacy, collective action or engaging with government.
NSWALC will end participation and its 2025-2028 partnership grant funding agreement from October 31, it announced on Friday night.
A spokesperson for NSW Minister for Aboriginal Affairs and Treaty David Harris said Closing the Gap is a priority for the NSW Government, has worked to achieve its outcomes in good faith, and understands "working in partnership is difficult and requires commitment from all parties".
The state Government will continue working with the NSW Coalition of Aboriginal Peak Organisations (CAPO).
Considerations to "future participation in shared decision-making forums with the NSW Government, including Closing the Gap" were first raised by NSWALC in June, due to "discriminatory elements", as described by NSWALC chief executive Clare McHigh, of proposed changes to NSW Crown Lands legislation.

Ms McHugh at the time said the peak body would always remain a committed member of the NSW Coalition of Aboriginal Peak Organisations (CAPO).
NSWALC have been vocal critics of proposed crown land legislation first introduced by the state government in March before being deferred in Parliament, and entering consultation with the Aboriginal land rights network.
Rallies, demonstrations, emergency meetings and ongoing pushback followed the introduction of the Bill.
A month-long consultation period on adjusted proposals was extended by a fortnight to July 31.
In its statement signalling its withdrawal from shared decision-making forums on Friday, NSWLAC identified what they called a clear "failure to deliver reform" across the land rights network in their claims of:
- Over 43,000 unresolved Aboriginal Land claims in the pipeline, and none since June 3;
- 'Limited and inconsistent' implementation of Aboriginal Land Agreements;
- Outstanding reforms out of a 2021 review of the Aboriginal Land Rights Act;
- Aspects regarding cultural fishing rights and exemptions within the NSW Fisheries Management Act, the peak says have never commenced; and
- Stalled comprehensive reform of of the Aboriginal cultural heritage system
NSWALC also noted: "The NSW Government ignored NSWALC's 2025-26 Closing the Gap budget proposal for essential housing reform and again denied the Land Rights Network funding in the 2026-27 State Budget, despite the Network managing in excess of 60 per cent of Aboriginal housing in NSW. Instead, the Government directed investment towards its own housing stock, exposing a clear failure to support the Aboriginal community-controlled sector."
NSWALC said the decision "reflected systemic concerns about the Government's delivery of Priority Reforms 1 to 3". These national priority reforms are: Formal partnerships and shared decision-making, Building the community-controlled sector, and Transforming Government organisations.
The peak body raised their concerns around policy and legislation progressing without proper consultation, Aboriginal organisations not being treated as equal partners, Aboriginal self-determination being failed by government systems, and the lack of an independent, Aboriginal-led body capable of holding government accountable.
"This is not a withdrawal from Aboriginal advocacy, from collective action or from engagement with government, but we are refusing to lend legitimacy to arrangements which are not delivering," NSWALC said in its statement.
"Aboriginal communities should not be expected to keep giving their time and expertise to structures which fail to deliver meaningful change. NSWALC will remain an active member of the NSW Coalition of Aboriginal Peak Organisations (CAPO) and continue working with NSW CAPO on shared priorities and collective advocacy.
"NSWALC remains committed to working with the NSW Government where that engagement advances Aboriginal interests and provides a genuine opportunity to achieve reform. Our focus remains on outcomes, not participation in a framework for its own sake."
A spokesperson for the Minister for Aboriginal Affairs and Treaty David Harris said the Closing the Gap Partnership agreement "was signed and partnership agreements were developed in 2020 under the former government".
"Whilst the Minns Labor Government has inherited this structure, we have nonetheless worked in good faith to achieved shared outcomes under the closing the gap agreement," they said.
"In June 2026, the NSW Government announced funding of $45.3 million for Closing the Gap initiatives delivered in partnership with Aboriginal organisations and communities.
"This funding is in addition to the $246.8 million investment announced in the 2025/2026 Budget to Close the Gap over four years developed in partnership with CAPO."
The spokesperson added "Closing the Gap is a priority for the NSW Government, and we are committed to working in partnership with all Aboriginal People to realise their aspirations and improve outcomes", and that "Government understands that working in partnership is difficult and requires commitment from all parties to work together towards common goals".
"The NSW Government will continue working with CAPO in line with its commitments to the National Agreement on Closing the Gap."