The peak body for Indigenous community-controlled health groups in Victoria says while there are wins in this year's state budget, there is much more to be done.

Front and centre for the Victorian Aboriginal Community Controlled Health Organisation (VACCHO) was the announcement of a $12.5 million commitment to Dandenong and District Aborigines Co-Operative Ltd (DDACL) to enable the reopening of all its services at a new location.

Last year, DDACL was reported to have flood-damaged ceilings, cracks in the walls, and a door too unsafe to open, with the entire facility condemned two months later over an asbestos risk deemed too high.

VACCHO chief executive Jill Gallagher said the investment in DDACL was long overdue, and came about through tireless advocacy from the community.

"Our ultimate goal remains a fit-for-purpose, permanent home for DDACL and one that meets the needs of a growing Community and the vital services it depends on," Dr Gallagher said.

"Today's announcement is a great win for DDACL and the south-east Aboriginal community it works for, but it provides only interim relief."

She said while the funding was welcome, there was still a long way to go.

A report by VACCHO and Infrastructure Victoria earlier this year found that up to $150 million is needed to deliver new and upgraded facilities to replace dilapidated and unsafe buildings across the state.

An assessment by VACCHO and the Department of Health found 82 per cent of ACCO health and wellbeing buildings needed replacing or substantial repairs within 15 years.

The audit of 200 buildings found more than half of the infrastructure is "already at the end of its useful life", with 42 per cent of the total floor space in a "critical condition".

"Infrastructure Victoria has recommended that $100-150 million is still needed to meet immediate infrastructure needs of Victorian health and wellbeing ACCOs and an extra $30 million for urgent infrastructure maintenance," Dr Gallagher said on Tuesday.

"Instead, outside of DDACL, only $5 million for infrastructure has been delivered for the whole Aboriginal sector."

VACCHO said they were pleased to see the National Skills Agreement funding channelled to Aboriginal Community Controlled Registered Training Organisations (ACC-RTOs), as well as $16 million to support Aboriginal women on the journey into motherhood.

However, the failure to allocate funding to implement key recommendations from the Royal Commission into Victoria's Mental Health System was criticised, with the "well-documented" mental health crisis in Aboriginal communities seeing the suicide rate amongst Indigenous people in Victoria at three times the level of the general population.

Dr Gallagher also expressed her disappointment at the lack of commitment to fund the "urgent mental health services for Aboriginal children and their families".

"Despite extensive Community and stakeholder engagement to co-design these initiatives, the funding to progress from design to action has not been realised," she said.

"The Balit Durn Durn Centre will continue to work with the Victorian Government to ensure they fulfil their obligation to realise the intent of the Royal Commission's recommendations and fund urgent mental health and healing services for Aboriginal people in Victoria."

Furthermore, there is no direct funding to deliver an Aboriginal-led model of care in custody, despite the new bail laws likely to see Indigenous incarceration increase dramatically.

National Indigenous Times reported that lockdowns - women kept in their cells for extended periods beyond regular times - at Dame Phyllis Frost Centre (DPFC) have become a regular occurrence. As a result, inmates are often unable to attend sessions with counsellors, drug and alcohol support workers and Aboriginal Wellbeing Officers (AWOs).

At least seven women - more than half of them Indigenous - have attempted to take their own lives in the past two months in the facility.

An Aboriginal-led model of care was first recommended by the Royal Commission into Aboriginal Deaths in Custody in 1991, as well as numerous other reports, investigations and reviews since.

Dr Gallagher said that VACCHO would continue to push for "sustainable, long-term investment that respects self-determination and meets Community needs".