The Coalition of Aboriginal and Torres Strait Islander Peak Organisations (Coalition of Peaks) has released its first annual report on the progress of the National Agreement of Closing the Gap.

The report shows progress across the Coalition of Peaks' partnerships, in their development of plans, establishing Community Data Project sites, reaching agreement on the Data Development Plan, growing their membership, and highlighting the success around Australia in implementing the National Agreement.

However, the group also recognised there is significant work to be done in Priority Reform Three; "systemic and structural transformation of mainstream government agencies and institutions".

Coalition of Peaks Acting Lead Convener Scott Wilson said Priority Reform Three is an opportunity to "identify, call out, and then address, the institutionalised racism in our mainstream agencies and services".

"All governments have committed to establish an independent mechanism that is able to review, report on, and make recommendations for how mainstream services should be transforming to be more responsive and accountable to the needs of our people," he said.

"While this commitment is not due to be implemented until 2024, the racism we experience, and the poor health outcomes of our people, demand urgent action."

Mr Wilson suggested his organisation could only achieve so much on its own as the success of the National Agreement "depends on the responses of governments, and work needs to accelerate beyond commissioning research papers".

"Our government partners need to be bold and break down the systems, structures, and beliefs of the past to implement and achieve Priority Reform Three," he said.

"If we get it right, Priority Reform Three can support the transformation of the mainstream agencies and services to reduce the occurrences of racism we experience and the corresponding impact on our health and life outcomes."

Mr Wilson told National Indigenous Times he hoped governments accelerate their work in transforming mainstream organisations.

"We also hope that Government Parties approach Priority Reform Three in an open and accepting manner, that they're prepared to identify, acknowledge, and call out the institutionalised racism, discrimination, and unconscious bias that Aboriginal and Torres Strait Islander people face when engaging with Government organisations," he said.

Mr Wilson suggested that Governments could take several actions to address institutionalised racism including working within a cultural competence and safety framework, recruiting more First Nations people in positions of influence, increasing partnerships that meet First Nations people's interests, identifying and addressing institutionalised racism in legislation and policy, and being prepared to provide Indigenous people with self-determination of their futures.

"The Independent Mechanism/s of Review are due to be established in 2023, it is imperative that governments prioritise this work so they are no longer giving themselves a big tick in their self-assessments.

"The most crucial of the independent mechanism/s is that is be recognisable to Aboriginal and Torres Strait Islander people and be culturally safe."