The federal government has announced an $11.31 million investment to support the establishment of 16 new Indigenous Protected Areas.

The announcement will see Indigenous Protected Areas (IPAs) — areas of land and sea Country voluntarily dedicated and managed by First Nations Traditional Owners to protect biodiversity, cultural heritage and values — across six states and territories.

The government says the projects, funded through the Australian Bushland Program, will potentially add more than 18 million hectares to Australia's protected area estate.

It will contribute to the federal government's target of protecting and conserving 30 per cent of Australia's land by 2030.

Federal Minister for Indigenous Australians Malarndirri McCarthy said the proposed IPAs would support First Nations-led management of land and sea Country.

"Indigenous Protected Areas are a powerful example of First Nations people leading the protection and management of Country, drawing on thousands of years of knowledge and connection to land and waters," she said.

"This investment will support Traditional Owners to explore the establishment of 16 new Indigenous Protected Areas, creating environmental, employment and economic opportunities for remote communities."

Environment and Water Minister Murray Watt said the 16 projects "have the potential to add more than 18 million hectares to Australia's protected area estate while supporting First Nations communities to care for Country, strengthen culture and protect important environmental and cultural values".

"IPAs demonstrate the incredible conservation outcomes that can be achieved when Traditional Owners lead the management of their Country," he added.

The projects are expected to help protect habitat for threatened species, including the greater bilby, princess parrot and red goshawk, while supporting conservation efforts in Threatened Species Priority Places such as the South-East Coastal Ranges and the Eastern Forests of Far North Queensland.

The proposed IPAs will also improve protection for underrepresented ecosystems and landscapes, including areas within the Sturt Plateau, Gulf Plains and Gulf Fall and Uplands bioregions.

The projects will begin with consultation involving Traditional Owners and other stakeholders with rights and interests in the proposed areas.