One of Australia's major providers of out-of-home-care services has echoed widespread concerns over major policy shortfalls detailed in the Productivity Commission's latest Closing The Gap report released on Wednesday.
While some of the Federal Government program's targets have increased, four of the 19 are worsening for Indigenous people, particularly children aged under 17.
Life Without Barriers on Thursday urged immediate reform to protect First Nations children after the latest data showed the rate of those in care had actually increased and the welfare of First Nations children in general worsening.
The Commission's annual report, which tracks key government commitments to help First Nations people achieve equality in health and life expectancy, made stark the critical need for genuine reform in the child protection sector, with more than five per cent of First Nations children aged under 17 separated from their families, an increase from 2021-2022.
Engagement in school and education had also dropped, with just 34.3 per cent of Indigenous children commencing school developmentally on track, a decrease from 35.2 per cent in 2018, the baseline year, and well short of the 55 per cent national target.
Life Without Barriers chief executive Claire Robbs said she was alarmed the gap had widened for First Nations children and the latest data should spark an urgent response from care sector organisations, government and child protective services.
"There cannot be a more significant investment nationally in this sector and with government than the need to urgently address the over-representation of Aboriginal and Torres Strait Islander children in the out-of-home care systems," Ms Robbs said.
The organisation's reconciliation plan outlines a progressive transition of children to Aboriginal community-controlled services, with decisions on their future made by family and kin.
"Aboriginal children have been successfully protected and loved for 65,000 years – the systematic ideology that First Nations families are unable to care for their children ... is in direct conflict with research and advice from First Nations Peaks on what is needed to Close the Gap," Ms Robbs said.
Australia's peak body for the welfare of First Nations children said the Commission's latest findings made for grim reading.
"Fewer children are developmentally on track when starting school ... our children are being driven backwards and the gap is becoming a chasm," SNAICC CEO Catherine Liddle said.
"Listen to our solutions to improve the lives of our children and families, and work with us to make the change a reality."
Indigenous Australians Minister Linda Burney said on Wednesday worsening outcomes in First Nations early childhood development, adult incarceration and displaced children, among others shortfalls, demonstrated a different approach was now required to improve disadvantages among First Nations, pointing to the Indigenous Voice to Parliament as a solution.