Minister for Indigenous Australians, Senator Malarndirri McCarthy, has responded to the latest Closing the Gap report from the Productivity Commission, noting some improvements but also expressing concern at worsening outcomes in other areas.

The Minister said the reports are an important transparency mechanism and "drive accountability" for all partners to the National Agreement for Closing the Gap.

"I am pleased that nationally we are seeing improvements in 10 of the 15 targets with data," she said.

"However, it is very concerning that we are still seeing outcomes worsening for incarceration rates, children in out-of-home care and suicide.

"That's why I'm working through Joint Council to drive greater action and effort by all governments, in partnership with First Nations people, to turn these targets around."

Despite improvements in a number of measures, overall only four of 19 targets are on track to be met in the timelines set by the National Agreement.

Senator McCarthy said it is "important that state and territory governments all back in their commitments under the National Agreement with actions that will help improve outcomes for First Nations people".

The Annual Data Compilation Report, released Wednesday night, found:

- Outcomes improving and targets on track:

Preschool enrolments (Target 3)

Employment (Target 8)

Land mass subject to legal rights and interests (Target 15A)

Sea waters subject to legal rights and interests (Target 15B).

- Outcomes improving but targets are not on track to be met

Life expectancy (Target 1)

Healthy birthweights (Target 2)

Year 12 or equivalent qualifications (Target 5)

Tertiary educations (Target 6)

Youth engagement (Target 7)

Appropriately sized housing (Target 9A)

- Outcomes continuing to worsen in four areas:

Early childhood development (Target 4)

Adult incarceration (Target 10)

Children in out-of-home care (Target 12)

Suicide (Target 14).

For youth detention (Target 11) there has been no change from the baseline data however outcomes have been worsening since 2022.

The Productivity Commission's report also found outcomes differ significantly between states and territories, and identifies poorer outcomes in remote Australia.

New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania and the ACT all report improvement for most targets.

In contrast, the Northern Territory has 15 targets with data and of these, only seven are improving.

The federal government noted that the results "highlight the need for all governments and Coalition of Peaks partners to continue to work together to achieve outcomes under the National Agreement".

Senator McCarthy said the federal government is delivering practical programs to address areas of need and improve outcomes for First Nations people, citing the Remote Jobs and Economic Development Program, National Strategy for Food Security in Remote First Nations communities, and the Northern Territory Remote Housing Package as examples.

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."

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."