It is clear what matters most for the Victorian government in the justice space is doubling down on areas that have failed in the past, the state's peak Indigenous legal organisation says.

Responding to Tuesday's state budget, titled "Focused On What Matters Most," and which will see a $727 million injection to increase the capacity in Victoria's prisons and youth justice centres, the Victorian Aboriginal Legal Service (VALS) said the government had its priorities wrong.

This included a lack of long-term funding, the legal organisation said, citing the $7.7 million over two years for their Regional Justice Hubs.

Whilst accepting the allocation is "welcome", VALS said the short time-frame of the funding "presents more problems than it solves".

"The fight is not over, the work continues because our people are being disproportionately impacted by this government's ill-informed policy and funding decisions," VALS' chief executive Nerita Waight said.

The government says the budget includes more than $20 million for a new self-determined grants program to support First Nations people on remand and bail, and that they will invest almost $14 million into Aboriginal community-based justice solutions, like VALS' regional hubs at Mildura, Bendigo, Morwell, Warrnambool and the western suburbs, as well as helping Aboriginal Community-Controlled Organisations (ACCOs) to deliver Koori women's and men's diversion programs.

50 per cent of First Peoples in the state live regionally, and Ms Waight said the budget announcements showed "once again that the lives and futures of Aboriginal children and young people don't matter, and this inequity is failing our kids".

"Postcode injustice and government inertia should not be the difference between our kids getting legal assistance and not," she said.

VALS said they had seen "consecutive blows" by the Allan government regarding "regressive and punitive legislative reforms impacting Aboriginal communities".

"Today, there was no announcement towards the promised legislative or programmatic off-ramps," a VALS spokesperson said

"This shows that the government continues to ignore our warnings about the inevitable harms our communities will experience as a direct result of ill-informed policy decisions."

After facing calls by conservative media outlets, the Opposition and the police, the Labor government introduced the "toughest" bail laws in the country earlier this year, despite criticism from Indigenous, human rights and legal groups.

Whilst they were commended by the PM in March, National Indigenous Times understands there was criticism in the party room surrounding the laws, which saw protests outside Parliament before their eventual passing.

Last week, the government was slammed for seemingly celebrating the higher number of people being held on remand, explicitly condemned by the 1991 Royal Commission into Indigenous deaths in custody.

The government spruiked their bail laws on Tuesday, noting, "now, more repeat alleged offenders are remanded, not getting bail".

Furthermore, despite National Indigenous Times revealing Victorian Police had cost the taxpayer at least $46 million in litigation fees over the past five years, the government said on Tuesday the budget would support "our hardworking Victoria Police members as they face new and growing challenges in their fight against crime".

VALS said they have been "very clear" that achieving community safety needed "sustainable investment in the social services system" as well as access to legal assistance.

"This is an immediate need, not a future ask," a VALS spokesperson said.

"Today, the government announced an additional $1.6 billion into implementing new bail laws. As a comparison, VALS received 0.5 per cent of that to support our communities, even though Aboriginal and Torres Strait Islander peoples represent 14.5 per cent of the prison population in this state."

Speaking last week, chair of the Yoorrook Justice Commission, Professor Eleanor Bourke AM, said there is a history of "governments going back on their word when it comes to implementing meaningful and enduring changes to improve First Peoples' lives".

On the new bail laws, she stated: "The justice system was not designed by, for or with our people. If you cast a net wide, as these laws promise to do, there will be collateral damage, like those experiencing poverty, homelessness and intergenerational trauma."

Citing Professor Bourke's words, Ms Waight said the government has "heard this time and time again".

"Self-determination for our peoples cannot be achieved through short-term funding cycles. We continue to call for the transfer of decision-making power, authority, control and resources to First Peoples, so we can determine the solutions for our people," she said.

"The government must heed the calls of ACCOs, the Aboriginal Justice Caucus and the Yoorrook Justice Commission. Otherwise, Treaty and truth-telling will be hampered because you are not listening to our voices."