The Northern Territory government has argued Closing the Gap targets cannot come at the expense of community safety, pushing back against federal calls to reduce incarceration rates, particularly for people held on remand.

Governments across the country have been criticised for sidelining Closing the Gap reforms when they clash with political priorities, despite all jurisdictions signing the agreement in 2020.

At last week's Standing Council of Attorneys-General (SCAG) meeting in Sydney, Minister for Indigenous Australians Malarndirri McCarthy urged states and territories to "do more to reduce the incarceration rates of First Nations adults and young people".

However, The Australian reported the meeting descended into tension after several jurisdictions, including the Northern Territory, insisted they would prioritise their own laws and election promises — even if that meant locking up more children.

That position was reinforced on Tuesday by NT Attorney-General Marie-Clare Boothby, who said her government "acknowledges" the Closing the Gap agreement but it "cannot come at the expense of community safety".

"Our government is delivering both: putting victims first through stronger bail laws, while tackling the root causes of crime by keeping kids in school, holding parents accountable, and creating pathways for young people," she said.

The CLP government has presided over a sharp increase in incarceration, with the Northern Territory having the second-highest imprisonment rate in the world — behind only El Salvador — and more than one per cent of the population behind bars.

Aboriginal people make up almost 90 per cent of those in custody.

Ms Boothby cited figures which directly contradict the 1991 Royal Commission into Indigenous Deaths in Custody, which recommended imprisonment only as a last resort. Since January, more than 3,300 alleged offenders have been refused bail under "Declan's Law" — a 44 per cent increase on Labor's last year in office — as well as a 40 per cent rise in remand numbers.

The government says remand times have fallen by 7 per cent, and that sentenced prisoners now outnumber those awaiting trial.

"Let's be clear: nobody wants to see Closing the Gap outcomes worsen, but the last decade shows what was being done simply hasn't worked," Ms Boothby said.

"That's why our government has changed direction, putting victims and community safety first, strengthening our laws, and tackling the root causes Labor ignored."

Experts have condemned the government's approach, saying its "tough on crime" policies fail to reduce offending while worsening trauma and overcrowding in prisons. These measures include lowering the age of criminal responsibility to 10, reintroducing spit hoods in youth detention, and expanding mandatory sentencing.

Chief Minister Lia Finocchiaro has defended the changes, saying she makes "no apologies" for strengthening what she called a "broken system," and expected "the usual offender apologists to criticise our efforts".

Earlier this month, the family of late NT Supreme Court Justice James Henry Muirhead AC QC urged the Prime Minister to intervene, describing the government's measures as "regressive actions".

The letter said the policies were "ineffective" in preventing crime and "demonstrably harmful".

"They punish the vulnerable, fuel cycles of trauma and recidivism, and ignore decades of research into what actually works to build safer communities," the family wrote.

Following the SCAG meeting, Senator McCarthy said she had raised concerns directly with Ms Finocchiaro.

"I made very clear the concerns I have in regards to First Nations youths in watch houses and the reintroduction of spithoods," she said.

"The Northern Territory has the worst outcomes when it comes to Closing the Gap. I have listened to the concerns of the First Nations sector, legal organisations and human rights groups.

"As Minister for Indigenous Australians, I will continue working with my ministerial colleagues to keep state and territories accountable for their commitments to close the gap on justice outcomes."

Independent Senator Lidia Thorpe also pressed the federal government to intervene, saying the incarceration crisis demanded immediate action.

"We don't need more reviews, reports or inquiries — we need action. Governments already know the solutions because our people have been telling them for decades. What's missing is the political will to act," she said.