The Northern Territory parliament passed amendments to the Sentencing Act 1995 and the Youth Justice Act 2005 on Thursday night to establish a legislative framework for a community courts sentencing procedure.

After the passage of the Sentencing Legislation Amendment Bill 2023, the government said in a statement that the reforms pave the way for Community Courts across the NT and "delivers on a key commitment under the Aboriginal Justice Agreement".

The AJA aims to reduce offending and imprisonment of Aboriginal Territorians; engage and support Aboriginal leadership; and improve justice responses and services for Aboriginal Territorians.

Attorney General and Minister for Justice, Arrernte, Arabana and Gurindji man Chansey Paech, said Community Courts support local community involvement and Aboriginal leadership "by holding offenders accountable for their behaviour and helping them to understand the impacts of their behaviour".

"They are part of our plan to improve justice outcomes and services for Aboriginal Territorians and support our Local Decision Making strategy," he said.

"The legislative changes we have made further our Government's commitment to delivering better justice outcomes for Aboriginal Territorians, and creating safer, stronger communities."

When he became Attorney General in May last year Mr Paech identified reducing the Indigenous incarceration rate as a top priority.

The government said Community Courts will help address and reduce the high rates of imprisonment and recidivism in the Territory by "engaging and supporting Aboriginal community leadership and cultural authority, through the active participation of Law and Justice Groups in the criminal justice sentencing process".

Budget 2023 provides for the operation of Community Courts and Law and Justice Groups, with six sites to be supported over the next two years.

More to come.