Labor's landslide victory in last weekend's South Australian election means the government must now "prioritise fixing the broken out-of-home (OOHC) system" in the state.

New Closing the Gap data shows Indigenous children in South Australia are placed in OOHC at 10.6 times the rate of non-Indigenous children, with the state recording the second-highest rate of removals nationally.

Although Aboriginal children make up just 5.8 per cent of the state's child population, they account for around 39 per cent of those in OOHC. SNAICC - National Voice for our Children says the figures point to a system that is not working.

The peak body for First Nations children and young people has welcomed the reappointment of Kyam Maher as Aboriginal Affairs Minister, alongside Alice Rolls as Child Protection Minister and Lucy Hood as Education Minister in the second Malinauskas government.

However, SNAICC CEO Catherine Liddle warned that without urgent reform, the overrepresentation of Aboriginal children in care will persist.

"We cannot keep pouring funding into a crisis-driven system that only reacts after a family has reached its breaking point," Ms Liddle said.

The federal government has recently legislated a new First Nations Children's Commissioner — a reform long advocated for by SNAICC — with a key role in protecting the rights of Indigenous children.

South Australia's Commissioner for Aboriginal Children and Young People, Dale Aguis, said greater investment in early intervention and prevention is needed to "reverse long-standing trends" affecting Indigenous families.

"We are recognising that the best people to support our communities are the communities themselves by providing direct, sustainable funding to ACCOs [Aboriginal community-controlled organisations]," he said.

"This isn't just about service delivery, it's about ensuring every child grows up with a clear sense of who they are and where they belong."

Ms Liddle said the latest Family Matters report shows the current reliance on crisis-driven support in South Australia is both "unsustainable and continues to perpetuate inequity", and that change is needed.

Echoing Mr Aguis, she said a "strategic shift in funding toward prevention and family preservation is essential" to ensure First Nations children remain safe and connected to their communities.

"The report highlights better outcomes for children who remain connected to culture and community, she said.

"Yet, Aboriginal community-controlled services lack the state support and funding critically needed to transition the sector from a crisis-response model to one of sustainable, community-led prevention."