Victoria's peak Indigenous-controlled health organisation has welcomed the state government's decision to raise the age of criminal responsibility to 12 - without exceptions - but warned it would need to be raised to 14 to avoid the well-known detrimental impacts of criminalising children.

Announced on Tuesday, the Victorian government's decision to raise the age - a long-term priority for the Victorian Aboriginal Community Controlled Health Organisation (VACCHO), along with other Indigenous organisations, human rights groups, and medical experts - means the state will be the first in the country to raise the age without carve outs.

Chief executive Jill Gallagher said the announcement was "long overdue", but called on the government to be "bold and brave and truly lead the way" by increasing the age to 14.

"Contact with the criminal justice system continues to stigmatise young people and makes it more likely that they will have ongoing contact with the system," the Gunditjmara woman said.

"This exacerbates intergenerational trauma and perpetuates cycles of disadvantage among Aboriginal and Torres Strait Islander families in Victoria."

VACCHO, who along with the Victorian Aboriginal Legal Service (VALS) have been two of the most high profile organisations in Victoria calling for the age to be raised, said whilst the decision was welcomed, they mirrored VALS' concerns yesterday that the age of criminal responsibility should be immediately raised to 14 - in line with medical expert advice and international standards for child development.

"While VACCHO believes the move to raise the age to 12 is a step in the right direction, many Aboriginal and Torres Strait Islander children in the 12-13 age bracket will continue to be disadvantaged, and experience poorer outcomes than their non-Aboriginal peers," a statement said.

The organisation argued there should be a "greater focus and investment in evidence-based trauma informed intervention programs," arguing they better address the cause of offending, and offer support that reduces recidivism in the long-term.

The Victorian government has committed to raising the age of criminal responsibility to 14 by 2027, with an independent review panel announced in October having already begun consultations on a new alternative service model.

On Tuesday, youth justice minister, Enver Erdogan confirmed this was still the plan, but noted the change would require a separate bill.

"In Victoria we have seen Aboriginal and Torres Strait Islander children aged 12 and 13 in custody when they should be attending their last year of primary school, or their first year of high school," Ms Gallagher said.

"As a society in 2024 we must not allow our Boorais to be left behind."

The Greens also called for the raising of the age to 14, with leader Ellen Sandell arguing: "Kids belong in school, not in prison".

"Labor have caved into right-wing pressure and chosen to ignore all the advice of experts and First Nations communities that says we should keep kids under 14 out of prison," she said.

The announcement from the government was also attacked by the state opposition - who were heavily criticised by Indigenous groups for withdrawing from the previously bi-partisan Treaty negotiations earlier this year - with shadow attorney-general Michael O'Brien saying the decision was a "plan to redefine crime and pretend it isn't happening".

"Labor's answer is simply to remove criminal responsibility from particular age groups and replace it with nothing," he said.