A requirement that police and courts must explicitly consider a person's Indigenous status when making decisions in regards to bail and sentencing would help address the systemic failures highlighted by Coroner Simon McGregor's investigation into the death of Gunditjmara, Dja Dja Wurrung, Wiradjuri and Yorta Yorta woman, Veronica Nelson, the Australian Lawyers Alliance says.

The Alliance also urged the Victorian government to establish therapeutic short-term housing options for individuals who are denied bail for alleged low-level offending or who do not have a suitable bail address.

ALA spokesperson Greg Barns SC said Victoria's bail laws must be "completely overhauled" and bold changes are needed to address "the scale of injustice that we are seeing".

"We must find a way to ensure the police and the courts make specific reference to someone's Indigenous status when making decisions about bail and sentencing," he said.

"The law in Victoria permits culture to be considered when the court is making decisions about bail but we must do more to ensure this is explicitly and directly considered both in determining whether bail is granted, but also in sentencing. This may require further legislative change but it will also require education and commitment from the police and the courts."

The Alliance also recommended the establishment of a short-term therapeutic housing system for individuals who do not have stable accommodation, a suitable bail address, or who are facing the courts for less serious offending.

"Too often bail is denied to a person in Victoria because they do not have somewhere to live or who provide a bail address that is not suitable," said Mr Barns.

"There are also many cases where individuals with a prior history of breach of bail are facing the court for less serious offences. They need accommodation support and therapeutic services while they wait for their case to be heard rather than being warehoused in a dangerous prison environment.

"Back in 2017 the ALA warned that the proposed changes to bail laws would be harmful and unfortunately that has proven to be the case. As the coroner highlighted today this harm has disproportionately impacted First Nations people and the results are tragic.

"Indigenous Australians are overrepresented on remand and we know that they experience unique disadvantages in their contact with the criminal justice system. As a result, we must make changes that acknowledge and rectify this discrimination."

Victorian Attorney-General Jaclyn Symes acknowledged that the state government needs "to do more" on justice reform, including the bail system.

"Our bail laws need to protect the community without having a disproportionate or unintended impact on those accused of low-level offending who do not present a risk to community safety. We know we need to do more in relation to criminal justice reform, including bail reform, and that work is continuing."

A state government spokesperson told National Indigenous Times changes "are being made" to address the over-representation of Aboriginal people in the justice system, in addition to investments have also focused on early intervention – to prevent crime and reduce re-offending.

The government has committed to bringing health care contracts in women's prisons under state control.

The Australian Lawyers Alliance is a not-for-profit national association of lawyers, academics and other legal professionals established "for the benefit of the community, and community members who have a particular need by reason of youth, age, infirmity or disablement, poverty or social or economic circumstances". The group is "dedicated to protecting and promoting justice, freedom and the rights of the individual".