Minister for Indigenous Australians Malarndirri McCarthy has announced a series of measures to tackle governance problems within the Anindilyakwa Land Council.

Senator McCarthy said on Thursday she had received a copy of the independent review into the progress of the ALC in addressing the recommendations of a governance audit undertaken by the Australian National Audit Office (ANAO).

The review was commissioned earlier this year by the National Indigenous Australians Agency (NIAA).

Senator McCarthy noted that the review shows that the ALC's governance, operations and decision-making "remain deficient".

The Minister said that while the board and management of ALC have acknowledged the recommendations of both the ANAO audit and this recent review, the lack of progress is "unacceptable".

Senator McCarthy said that in response to the review's findings, she has taken several steps: writing to the ALC Board to ensure the Board and voters are aware of the review's findings ahead of the ALC Board elections next week; withholding approval for the ALC's 2024/25 budget, instead approving an operational budget until 1 December 2024, noting that the full budget will only be considered when ALC has demonstrated to the NIAA that it is "sufficiently prioritising and implementing the recommendations of the review and the ANAO audit"; and asking the NIAA to make the full independent review report available on its website to ensure transparency of the review, its findings and recommendations.

The Minister said NIAA will monitor ALC's progress and will provide support and advice to meet the ANAO and the independent review recommendations.

"Good governance is the cornerstone of trust and needs to be based on transparency, fairness, and accountability. Without the trust of the Anindilyakwa people and other key stakeholders, the ALC cannot properly represent its people and achieve its mission," she said.

"I take governance at Land Councils seriously - poor governance and decision making can have a significant and detrimental impact on social, cultural and economic wellbeing.

"The steps I have taken today put the ALC Board and management on notice. Their failure to sufficiently respond to the recommendations of the independent review and ANAO must not continue, and they need to demonstrate their progress to the NIAA."

In February, hundreds of Anindilyakwa people and Traditional Owners of Groote Eylandt signed a petition to federal parliament calling for the government to investigate "potential gross misconduct" in the Council in regards to Indigenous royalties distribution.

In July, Anindilyakwa Land Council chief executive Mark Hewitt was referred to the National Anti-Corruption Commission over allegedly misusing millions of dollars in mining royalties.