The Australian government has announced funding for two First Nations organisations to support Indigenous children's success at school.

$4 million is being invested to support the GO Foundation's scholarships, supporting Indigenous students to succeed in school and prepare for the workforce, whilst an additional $4.5 million is supporting the Aurora Education Foundation's Redefining Indigenous Success in Education (RISE) initiative.

Minister for Indigenous Australians, Linda Burney, said education was key to helping empower young people.

"GO Foundation provides the support for young Indigenous Australians to be strong in their culture and succeed at school, training and work," she said.

"And the Aurora Education Foundation is doing important work to help improve the system so that all Aboriginal and Torres Strait Islander can thrive."

Speaking at a press conference, Ms Burney said education is an "absolute tool" in helping to break the "poverty cycle that so many Aboriginal families find themselves in".

"Education is a hook to close the gap. Education is so very important in life, opening up life choices and life chances," she said.

Aurora chief executive and Wiradjuri woman, Leila Smith, said the RISE initiative helps imagine a system where Indigenous success is recognised in all forms.

"A system where we leverage the value of Indigenous knowledge and traditions that have sustained our people and this continent for millennia," Ms Smith said.

"We have so much to gain from championing Indigenous definitions of success in education and tapping into the potential of Indigenous-led data to influence real change and better outcomes."

The Aurora Education Foundation supports Indigenous high school students through tutoring, camps and mentoring programs, and Ms Smith said the investment would allow Aurora to expand their programming to more Indigenous students — up from 450 students, to 800.

"This is going to deliver high impact education for Indigenous children and Indigenous students and spark conversations about high aspirations and limitless potential," she said.

"I'm really excited about this investment, not just for what it means for Aboriginal and Torres Strait Island students today, but for generations to come."

Education Minister Jason Clare said the scholarships were part of a desire for more children to finish school and get a crack at going to university.

"The work that Aurora and GO Foundation are doing is working. It is increasing attendance rates. It is also helping more Indigenous students to finish school and go on to TAFE or university," the Minister said.

The GO foundation has awarded more than 1,700 scholarships to Indigenous young people since its founding in 2009, across 100 schools and universities.

"The GO Foundation believes in the power of education, the strength of identity and culture, and the unlimited potential of Indigenous students engaged in our Program," GO chief executive Charlene Davison said.

"Our 15-year milestone reflects our maturity as an organisation and our ability to stand the test of time by creating a space for Indigenous students to unlock the power of their identity and culture while at school and university."

More information about the GO Foundation and Aurora Foundation is available online.