The democratically elected body for First Nations people in Victoria say the state government risks implementing the mistakes of the past with its recent bail law changes.

On Wednesday, the Labor government earnt the wrath of legal, Indigenous and human rights groups by backflipping on bail changes that came in after a concerted campaign by the family of Indigenous woman Veronica Nelson, who died in custody in 2020.

Premier Jacinta Allan, in announcing the removal of detention as a last resort and stating community safety is now the "overarching principle" when deciding on bail for both children and adults, said the changes in 2023 were, in hindsight, wrong.

In a statement, the First Peoples' Assembly said they were "deeply concerned" about the proposed changes, which are expected to be rushed through parliament next week.

They said the laws would likely worsen the systemic issues highlighted by the Yoorrook Justice Commission, including the "over-criminalisation of First Nations Victorians, the high rates of unsentenced incarceration, and the tragic deaths of Aboriginal people in custody".

Premier Allan admitted on Wednesday the new laws would increase the number of people held on remand, prompting the former president of Liberty Victoria, Michael Stanton, to state on X: "The duplicity of this Government fronting Yoorrook and now desperately introducing these draconian bail reforms is just breathtaking. "Including removing the principle of detention being a last resort for children? This will result in deaths in custody. It's a disgrace."

Assembly Co-chair and Gunditjmara man, Rueben Berg, said rushing bail law reform risked repeating mistakes of the past – "mistakes highlighted by a Coronial Inquest and, most tragically, the mistakes that led to Veronica Nelson's death in custody".

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.

An inquest into her death heard Coroner Simon McGregor describe the then-bail laws as an "unmitigated disaster". He said they discriminated against Aboriginal people, were incompatible with Victoria's Human Rights Charter, and should be changed urgently.

Veronica's mother, Aunty Donna Nelson, told Guardian Australia on Wednesday her daughter's death "should never have happened" and the government's move "provides the licence for the police and courts to lock more of our people up".

"Shame on you Jacinta Allan, your lack of leadership will cost lives," she said.

Speaking on ABC Breakfast on Thursday, Premier Allan said through the Attorney General, "there has been contact made" with Ms Nelson's family.

"What happened through the circumstances around [her] death was an absolute tragedy," she said.

"And that's why the safeguards, in response to the [coronial investigation] that were put in place in 2023 will remain in place."

She added: "The focus here is on the serious and worst offenders who are causing such concern and trauma in the community."

Mr Berg said First Peoples in Victoria shared the community's concern about violent crime, noting they are "impacted by it to".

However, he argued the evidence was clear that "rushed, knee-jerk reforms" disproportionately harm Indigenous people, often "lumping petty offences together with serious crimes under the same laws".

He urged the government to avoid "politically driven reactions to complex issues" and instead adequately invest in diversion and alternative pathways.

The Victorian Aboriginal Legal Service (VALS) said extra financial support was needed to "mitigate the harms this government is so determined to inflict," but the government said on Wednesday there will be no extra funding for groups and organisations, arguing they have already been given support in previous budgets.

Mr Berg said there needed to be "adequate investment in diversion and alternative pathways".

"Safe and strong communities are built by addressing the root causes of crime, not by bypassing consultation with Aboriginal Community experts," he said.

"We need solutions developed with us, not imposed on us."