New child protection laws introduced to Victorian parliament Tuesday will expand the role of Aboriginal agencies delivering children and family services to reduce the over-representation of Aboriginal children in care in the state.

The Children and Health Legislation Amendment (Statement of Recognition, Aboriginal Self-determination and Other Matters) Bill 2023 recognises that Aboriginal people are best placed to make decisions and deliver services that protect the best interests of Aboriginal children.

The Victorian government said the legislation is the first of its kind in Australia and a "landmark step to meet the Closing the Gap National Agreement target to reduce the over-representation of Aboriginal children in care in a way that is culturally safe and promotes the best interests of the child".

The Bill includes a Statement of Recognition of the impact of past policies on Aboriginal people designed in equal partnership with Aboriginal stakeholder groups including the Victorian Aboriginal Child Care Agency and the Victorian Aboriginal Children and Young People's Alliance.

The new law will expand circumstances in which authorised Aboriginal agencies deliver child and families services under the Children, Youth and Families Act 2005, and will allow greater information sharing between the government and Aboriginal Controlled Community Organisations.

Victorian Aboriginal Child Care Agency chief executive Professor Muriel Bamblett AO said the proposed laws "represent what can be achieved when Aboriginal Community Controlled Organisations work with their communities to demand better outcomes for children and families – and the Government actively takes up the challenge and commits to self-determination".

"The proposed Bill enables us to not just stop the cycle of higher rates of Aboriginal child removal, it will also help address the cycle of family violence. Strengthening the whole family is the only way forward," she said.

Victorian Aboriginal Children and Young People's Alliance chair and Ballarat and District Aboriginal Cooperative chief executive Karen Heap said the legislation contains principles that will guide decision makers "to promote self-determination and healing for Aboriginal children and families".

"Aboriginal families can advocate for themselves and ask for accountability in a system that has historically contributed to creating trauma and disconnection," she said.

"The new laws are a first in Australia – they help keep Aboriginal children with their families by enshrining Aboriginal self-determination in child and family services."

Victorian Minister for Child Protection and Family Services Lizzie Blandthorn said the new law will help close the gap by expanding the role of Aboriginal agencies in delivering children and family services.

"We're taking that action to reduce the over-representation of Aboriginal Victorians in the child protection system," she said.

The Yoorrook Justice Commission acknowledged the reintroduction of the legislation.

Deputy Chair and Commissioner of the Yoorrook Justice Commission Sue-Anne Hunter, a child and family services practitioner, said Yoorrook heard from Aboriginal leaders who talked about the failings of Victoria's child protection system and the devastating lifelong impacts of child removal, on the child, their family and Community, during hearings in December.

"We heard about the lack of understanding and respect amongst child protection staff for Aboriginal family structures and approaches to raising children, and the strength that being raised in family and community gives Aboriginal children. We heard that too often, child protection staff are quick to jump to removing children, because Aboriginal families do not always fit white, middle-class assumptions," she said.

"We heard witness after witness call for genuine self-determination for First Peoples, and reform of the child protection system to address the injustices faced by our people.

"Yoorrook will continue to investigate the underlying issues that have led to Aboriginal children being removed in large numbers as we make recommendations for systemic reform."

Yoorrook will hold two rounds of public hearings between February 27 and March 31 as part of its inquiry into the systemic injustices experienced by First Peoples in Victoria's criminal justice and child protection systems.

The Commission will produce a critical issues report in mid-2023 to detail its findings and make recommendations to the Victorian Government for reform.