Tuesday night's budget shows the government doesn't support First Nations Australians, Victoria's peak Indigenous legal service says.

Despite calls from the National Aboriginal and Torres Strait Islander Legal Services (NATSILS) for $1.15 billion in additional investment for Indigenous legal services to ensure equitable access to culturally safe and appropriate legal services, no extra funding was forthcoming in the budget.

It comes as states and territories continue to increase Indigenous incarceration, with several jurisdictions implementing policies directly in contradiction to the Closing the Gap agreement.

In a statement, the Victorian Aboriginal Legal Service (VALS) said the budget showed it was "clear" that First Peoples' votes don't matter", arguing it had remained "largely silent on the issues that impact Aboriginal peoples in Victoria".

The latest Closing the Gap data found only 4 of 19 targets were on track, despite considerable federal funding around jobs programs, remote communities, and healthcare.

The government has enacted considerable policies for housing, especially in remote communities, but the homelessness rate for First Nations people in Victoria remains. The funding approach has focused largely on economic self-determination for First Peoples over social housing and welfare funding increases.

"It speaks volumes where a government invests almost 200 per cent more in schemes to support home ownership than they do in providing public and social housing," a VALS spokesperson said.

"We need a government that doesn't prioritise individual wealth over the basic human right of having a home, for all Australians."

VALS' chief executive Nerita Waight said "Everyone has a right to a safe and accessible home, the government's focus on home ownership shows a complete disregard for their duty to provide public and social housing".

The Victorian Aboriginal Housing and Homelessness Framework, Mana-na woorn-tyeen maar-takoort, found only 43 per cent of Victorian Aboriginal households own or are purchasing their own home, compared to more than 68 per cent of non-Aboriginal Victorian households.

Victoria has the highest levels of Indigenous out-of-home care (OOHC) in the country, almost twice the national average, whilst new bail laws passed last week are expected to see the rate of Indigenous people - both young people and adults - held on remand in Victoria increase.

The federal government has been critical of jurisdictions enacting policies that go against the Closing the Gap agreement, especially in the NT. However, on Tuesday, Prime Minister Anthony Albanese said he agreed with the latest laws in Victoria.

"I support the changes that she [Premier Jacinta Allan] has brought in very strongly," he said. "Every Australian has the right to feel safe in their local community."

He added: "So, whenever the Australian Federal Police or our security agencies have asked for more resources or new technology or changes to the law to help them do their job, my answer is just one word, which is 'yes'."

In response, Ms Waight said the PM's support was a "new low".

"Incarceration numbers will only increase, no government can sit back and make spineless commitments to close the gap whilst also supporting laws that we know will discriminate against Aboriginal people, and has removed incarceration as a last resort, a protected human right for children," the Yorta Yorta and Narrandjeri woman said.

Independent Victorian Senator Lidia Thorpe told National Indigenous Times on Wednesday the government needed to fund legal services more in the wake of increased incarceration rates.

"They've had a number of reports; they've had a number of inquiries; they've had a number of stakeholders; and they've ignored them all," she said.

"What about our kids that are dying at the hands of the system?"

Last year, the government pledged $4.4 billion in new funding to address the "scourge of gender-based violence" and respond to the Rapid Review into Prevention Approaches. $3.9 billion in support for frontline legal assistance services will be delivered through a new National Access to Justice Partnership (NJAP) with the states and territories.

Furthermore, $351 million over five years from 2025-26 will be allocated for a renewed, five-year National Partnership Agreement on Family, Domestic and Sexual Violence Responses frontline services, which will be matched by states and territories.

Last years The Mid-Year Economic and Fiscal Outlook (MYEFO) revealed from 2025-26, Indigenous legal services will receive $160.7 million in funding as part of NJAP. This is an increase from the $106.4 million in the last financial year under the old NLAP.

It followed a review by Dr Warren Mundy that recommended the old NLAP funding model be abandoned.

Ms Waight said Tuesday night's budget "leaves a lot to be desired when it comes to investing in measures that will help us reach Closing the Gap targets".

"We will continue to hold governments to account when they pay lip service to Aboriginal self-determination. This Federal Budget isn't even worthy of a glance by Victorian Aboriginal Communities," she said.