The NSW/ACT Aboriginal Legal Service says new figures showing rising Aboriginal incarceration demonstrates the NSW government's failure to prevent crime and make communities safer.

ALS NSW/ACT chief executive Karly Warner asked if the state government cares about reducing crime.

"Its focus on throwing people in jail is coming at the expense of policies that can actually stop crime," she said.

"The increased number of Aboriginal adults and children incarcerated is not a result of evidence-based policy – it's the result of a political agenda more concerned with appearing tough on crime than with stopping it, and it is perpetuating trauma in our communities.

"These new bail laws and increased policing are making communities less safe, and Aboriginal communities and children are becoming collateral damage."

The Bureau of Crime Statistics and Research (BOCSAR) released statistics on Wednesday showing that the number of Aboriginal children in NSW prisons has risen 30 per cent over the past five years, primarily due to a rise in the number of Aboriginal children on remand - up 76.4 per cent.

"These statistics also show that Aboriginal women are grossly disproportionately charged by police, with consequences like imprisonment, loss of housing and removal of their children. These consequences ripple through our communities for generations," Ms Warner said.

"Effective prevention looks different for different communities. The solutions are there, but the government is failing to implement them.

"Ultimately we need politicians to focus on preventing crime and meeting community needs because that's what actually matters, and that is what will make communities safer."

NSW Attorney General Michael Daley acknowledged on Wednesday that the BOCSAR quarterly update shows an increase in the number of Aboriginal people in custody.

Despite the massive spike in the number of Indigenous children being incarcerated, the Attorney General said "most of the increase in Aboriginal people in custody since March 2020 are those on remand for domestic violence-related offences," he said, adding that the state's new bail laws made it "much more difficult for serious domestic violence offenders to get bail".

Mr Daley said the government remains "committed to working towards our Closing the Gap imprisonment targets".

"The government is working collaboratively with Aboriginal communities to reduce crime and the drivers of crime," he said.

"The NSW Government is also strongly committed to the Closing the Gap target of reducing the rate of family violence and abuse against Indigenous women and children. We are making major investments into domestic violence primary prevention and early intervention to stop this kind of behaviour before it starts."

The Attorney General said the state government "will continue to look at ways to protect women and children from domestic and family violence".