The new Productivity Commission report on Australia's performance towards the targets and indicators in the National Agreement on Closing the Gap, released Wednesday night, shows only four of 19 targets are on track to be met.

The Annual Data Compilation Report incorporates the latest data from the Closing the Gap Dashboard, which has been updated to include historical and ongoing context for socio-economic outcome eight - economic participation.

Of the nine socio-economic targets with an updated assessment of progress in the ADCR, the assessment has changed for only one: healthy birthweight (Target 2). 89.2 per cent of Aboriginal and Torres Strait Islander babies born were of a healthy birthweight and this target is assessed as showing improvement but not on track to be met.

The Productivity Commission said this year's ADCR takes "a closer look" at the outcomes and experiences of different population groups, including young people, people with disability and people living in remote areas.

While the target for preschool enrolment rates is on track to be met, a lower proportion of Aboriginal and Torres Strait Islander children have been assessed as developmentally on track based on the Australian Early Development Census.

Commissioner Selwyn Button said the information in the report shows that "outcomes can't easily be reduced to a number".

"The outcomes are all connected, each reflecting aspects of a broader system and the experiences of the people who have shared their stories," he said.

"What the outcomes in the Agreement reflect most of all is the limited progress of governments in collectively acting on the Priority Reforms: sharing decision making and data with communities; strengthening the Aboriginal Community Controlled sector and changing the way governments operate.

"The recently released independent Aboriginal and Torres Strait Islander-led review of the Agreement and the PC's 2024 Review both show that the transformational change that governments committed to is falling well short of what has been promised."

The ADCR also highlights areas where a lack of data is continuing to hinder progress reporting, noting that while "governments are continuing to develop ways to measure progress towards the Priority Reforms… the lack of disaggregated data at a local and regional level is making it harder to develop localised strategies and plans to improve outcomes".

Key data

An assessment of progress is available for 15 targets. The PC has been able to assess progress for nine targets since the last ADCR:

Outcomes are continuing to worsen in four targets: adult imprisonment (Target 10); children in out-of-home care (Target 12); suicide (Target 14); and children developmentally on track (in all five domains of the Australian Early Development Census) (Target 4).

Outcomes are improving but targets are not on track to be met in six targets: life expectancy (Target 1); healthy birthweights (Target 2); year 12 or equivalent qualifications (Target 5); tertiary qualifications (Target 6); youth engagement (Target 7); and appropriately sized housing (Target 9A).

Outcomes are improving and targets are on track to be met in four targets: preschool program enrolments (Target 3); employment (Target 8); and land mass and sea country subject to legal rights and interests (Targets 15A and 15B).

Outcomes for one target are assessed as having no change from the baseline year: youth justice (Target 11).

The Productivity Commission said it is still unable to assess progress against four targets: access to essential services (Target 9B); family violence (Target 13); number and strength of Aboriginal and Torres Strait Islander languages being spoken (Target 16); and digital inclusion (Target 17).

State and territory outcomes

While there is no agreed process to determine the relevant contributions required from each state and territory towards the national targets, the dashboard and the ADCR highlight areas where jurisdictions have shown improvement, a worsening, or no change against each target. Following this update, each jurisdiction's progress towards the targets is as follows:

NSW – improvement for most targets. Worsening against targets 4 (children developmentally on track) and 10 (adult imprisonment);

Victoria – improvement for most targets. Worsening against target 12 (children in out-of-home care);

Queensland – improvement for most targets. Worsening against targets 10 (adult imprisonment), 11 (youth detention) and 12 (children in out-of-home care);

WA – improvement for most targets. Worsening against targets 2 (healthy birthweight), 4 (children developmentally on track) and 10 (adult imprisonment);

SA – improvement for most targets. Worsening against targets 7 (youth engagement), 10 (adult imprisonment) and 12 (children in out-of-home care);

Tasmania – improvement for most targets. Worsening against targets 4 (children developmentally on track), 9A (appropriately sized housing), 10 (adult imprisonment) and 12 (children in out-of-home care)

ACT – improvement for most targets. Worsening against targets 4 (children developmentally on track), 9A (appropriately sized housing) and 11 (youth detention); and

Northern Territory – improvement toward some targets. Worsening against targets 1 (female life expectancy), 2 (healthy birthweight), 3 (preschool enrolment), 4 (children developmentally on track), 7 (youth engagement), 8 (employed), 10 (adult imprisonment), and 11 (youth detention).

Stronger commitment needed

Queensland Aboriginal and Islander Health Council chief executive Paula Arnol said the latest report again shows the urgent need for greater commitment from all governments.

"This year's CTG report card remains disappointing and continues to demonstrate a lack of focus on delivering priority reforms, and the need for local practical solutions to the challenges of Closing the Gap," she said.

"It's 2025 and Aboriginal and Torres Strait Islander people are still not experiencing the health outcomes that non-Indigenous Australians enjoy. This is unacceptable.

"If we commit to these priority reforms, improvement in the targets will follow."

SNAICC - National Voice for Our Children chief executive Catherine Liddle said the results point to "a lack of government follow-through, not a lack of solutions".

"The update makes it clear that these results are not the failings of our children, families or communities. They are the failings of governments who continue to fall short on their obligations under the National Agreement on Closing the Gap," she said.

"The update shows that when governments work in true partnership with Aboriginal and Torres Strait Islander communities, we see real change. Progress in areas like land rights and employment shows what's possible when communities are empowered and governments step up. These improvements... have been driven through governments working directly with our communities and backing Aboriginal-led solutions."

More to come.