An independent review into the funding of legal services has found the current levels are drastically insufficient to meet the needs of Australia's population, especially for marginalised groups like Aboriginal and Torres Strait Islanders, with legal groups arguing they have been raising these concerns for years.

The Independent Review of the National Legal Assistance Partnership (NLAP), which provides funding to legal groups - including all Aboriginal Legal Services' - was compiled by Dr Warren Mundy, who was asked to examine the future of the partnership.

Dr Mundy noted the demand for legal assistance was increasing due in part to socio-economic factors, including the "growing impacts of entrenched economic disadvantage, discrimination, and intergenerational trauma, experienced by Aboriginal and Torres Strait Islander peoples".

"I hope that this report lays the foundation for governments across Australia to overhaul how access to justice is supported in this country, particularly for Indigenous Australians, women and children," Dr Mundy said.

He gave his review to the government in March, and legal services had previously criticised the government for delaying its release by just under three months, with the NLAP due to expire at the end of June.

"Current funding levels are insufficient to meet the legal assistance needs of the Australian community," Dr Mundy said.

The report makes 39 recommendations, identifying issues - including lack of funding and staffing - that have impacted the effectiveness of the sector.

Dr Mundy highlighted a previous review, which made 18 recommendations to improve legal assistance in Australia, but of which only three of these were taken up by the then government.

"There is not much point to a review if its work and recommendations do not lead to transformational change," he said.

He recommended including an extra $459 million in funding to ease means test criteria for civil matters, arguing, "over 1.5 million people living below the poverty line are ineligible for legal assistance under current means tests".

Dr Mundy also proposed an additional funding of $250,000, starting from 2024–25, for Women's Legal Services Australia to act as the national women's legal assistance peak, as well as emphasising proper access to justice for Aboriginal and Torres Strait Islander people — including the essential funding for interpreters, which is currently "inadequate".

NATSILS, the peak body representing the seven state and territory-based Aboriginal and Torres Strait Islander Legal Services, said in a statement that "after months of sounding the alarm" on funding shortfalls, they were "vindicated" by Dr Mundy's findings.

Chair Karly Warner said they would examine the review in detail, "but it's immediately clear this is a vindication of what we've been saying all along".

"Our government resourcing is totally inadequate and doesn't come close to meeting the legal needs of Aboriginal and Torres Strait Islander people, which is an affront to justice and an obstacle to Closing the Gap," Ms Warner said.

A statement from Attorney-General Mark Dreyfus' office, said Dr Mundy's review will "inform recommendation of future funding arrangements ahead of the expiry of the current NLAP on 30 June 2025".

"The Commonwealth, states and territories will carefully consider the report and continue working together to agree on how best to support the sector to provide access to justice in the next partnership agreement from 1 July 2025," the statement said.

The Victorian Aboriginal Legal Service (VALS) welcomed the recommendations in Dr Mundy's review, but questioned why the Government had yet to commit to implementing the recommendations, noting Mr Dreyfus had the review's final report since March.

Chief executive Nerita Waight said the Attorney-General's Department had "no defined strategy" on how to engage with the sector to deliver on the needed reforms.

"Shame on them to release this report during Reconciliation Week with no plan or strategy to implement," Ms Waight said.

"I echo Dr Mundy's calls for this review to lay the foundation for governments across all jurisdictions to reform how people access legal supports. This is yet another example of Aboriginal voices being loud and clear on what supports our communities need. It's time to act now."

VALS had previously criticised the government for only providing a "measly" $15.4 million for ATSILS in the 2024-25 Federal Budget.

NATSILS called on the government to implement all of Dr Mundy's recommendations, in partnership with First Nations legal services, to "ensure all Indigenous communities have access to adequately funded legal assistance services".

"This is a critical test of Australian governments' genuineness in their Closing the Gap commitments," Ms Warner said.

"Right now, Aboriginal and Torres Strait Islander Legal Services do not have nearly enough resources to meet our communities' need for help."

The Law Council of Australia welcomed the report, but President Greg McIntyre said the Council had "hoped its release would be accompanied by a government response that clearly outlines an implementation plan".

Federal Senator Lidia Thorpe also called on the Federal Government to commit to the urgent increase in funding needed, arguing Dr Mundy's report laid out the "crisis bare".

"The sector was hoping that with the release of this report, the AG would commit to its recommendations and lay out an implementation plan," Ms Thorpe said. "But Dreyfus has said he needs to talk to the states."

National Indigenous Times understands the next meeting of the Standing Council of Attorneys-General (SCAG) will not be until July.

"Access to properly funded and culturally safe legal services is a key recommendation from the Royal Commission into Aboriginal Deaths in Custody, but over 30 years later the government still hasn't committed to this," Ms Thorpe said.

"Now is the time. The Labor government has no excuse."