The Commonwealth needs to pull more levers to force state and territory governments to help close the gap, independent Senator Lidia Thorpe.

Senator Thorpe's comments come after Victoria announced sweeping changes to its bail laws on Wednesday, which Premier Jacinta Allan admits will see more people spend time on remand.

It expands on the youth bail laws seen in NSW - which Labor Premier Chris Minns has enthusiastically defended - by including adults, with the Victorian government touting them as the toughest in the country.

Senator Thorpe, who has previously criticised the Federal Government for a lack of action on Closing the Gap by not doing more to make the states adhere to their responsibility, said they need to "step in".

"The recent federal inquiry into child prisons revealed there are multiple levers that the federal government could use," Senator Thorpe said.

"The inquiry heard clear evidence of widespread human rights abuses and overwhelming evidence that jailing children does not reduce crime.

"Yet, state governments continue to breach Australia's human rights obligations and their Closing the Gap commitments."

Speaking at the hearing in Canberra last month, barrister Tony McAvoy SC said jurisdictions across the country "appear to be openly abandoning our country's international human rights obligation".

"Unless there is some commonwealth action, this will continue to be the case. It is not a question of if the commonwealth should act, but what it should do."

Last week, chief executive of the National Aboriginal Community Controlled Health Organisations (NACCHO), Pat Turner, said many of the Closing the Gap targets were being flagrantly violated.

"Frankly, state and territory governments need to start pulling their weight," she said.

The federal government has previously expressed concern about the actions of several states and territories but has argued they are constitutionally unable to do anything.

Last month, Minister for Indigenous Australians, Malarndirri McCarthy, said the government was "deeply troubled around the rising rates of remand" across the country and noted a letter had been sent to all jurisdictions to follow up where they were at with remand changes.

In a statement to National Indigenous Times on Wednesday evening, Senator McCarthy said the Albanese Government is "committed to working with states and territories to prevent First Nations youths and adults coming into contact with the justice system".

The NT Senator highlighted implementations by the government which have been welcomed by Indigenous organisations and advocates, including the establishment of the Commissioner for Aboriginal and Torres Strait Islander Children and Young People and "investing in up to 30 community-led Justice Reinvestment Initiatives" across the country.

"State and Territory Governments have responsibility for the criminal justice system within their jurisdictions, including policing and corrections," Senator McCarthy said.

"The National Agreement on Closing the Gap was signed by all states and territories, and they need to back up their commitment with action to achieve the targets and deliver on the Priority Reforms in their jurisdictions."

Senator Thorpe said since Senator McCarthy had contacted state leaders about remand concerns, Labor governments in both Victoria and NSW had enacted laws which will exacerbate the number of people behind bars.

"If the federal government is serious, it must take stronger action," she said.

"I have been calling for strong national standards to force states and territories to follow the evidence instead of using children as political scapegoats."

Highlighting the case Veronica Nelson and the struggles her family went through to change bail laws in the state, Senator Thorpe added: "We know that these punitive policies always disproportionately harm First Peoples."

"It's despicable that after Veronica Nelson's family went through the trauma of a coronial inquest, and fought so hard for change, [Premier] Allan has backflipped so quickly," the Senator said.

Ms Nelson, a Gunditjmara, Dja Dja Wurrung, Wiradjuri, and Yorta Yorta woman died in custody in 2020 in a "vomit ridden" prison cell from a rare gastrointestinal condition – known as Wilkie's syndrome - along with malnutrition and opiate withdrawal. She had been arrested and denied bail for alleged shoplifting.

An inquest into her death heard Coroner Simon McGregor describe the then-bail laws as an "unmitigated disaster" and her family pursued changes - known as Poccum's law after Veronica's childhood nickname.

"The Victorian Aboriginal Legal Service has rightly said that granting bail saves lives. We must not return to discriminatory bail laws that kill First Peoples," Senator Thorpe said.

"This is a national issue. We need strong national leadership now."

This report was updated at 8:25pm AEDT March 12 to include the statement from Senator McCarthy.