The federal government's new employment program - designed to replace the previous Coalition scheme - officially launches on Saturday, promising tailored support for around 40,000 job seekers.

The Remote Australia Employment Service (RAES), a $1.9 billion investment over five years, replaces the Liberal-era Community Development Program (CDP) and aims to help people in remote communities build skills and become job-ready.

The government says RAES will support job seekers with the training and skills they need to take up available opportunities, including those created through the Remote Jobs and Economic Development (RJED) program.

Minister for Indigenous Australians, Malarndirri McCarthy, said the government was fulfilling its commitment to replace the "failed CDP," noting the new service had been developed through consultation with remote communities, job seekers and stakeholders.

"RAES will differ from the CDP by being more flexible, leading with a strengths-based approach, supporting providers to work collaboratively with remote communities to co-design projects based on their needs," she said in a statement.

In September, a Federal Court class action was launched against the Commonwealth, with lawyers seeking compensation for the "thousands of Aboriginal and Torres Strait Islander people" who took part in the CDP between July 2015 and May 2021.

The class action alleges the program - which overwhelmingly targeted First Nations communities - was "discriminatory and unjust". Participants were required to complete 25 hours of 'Work for the Dole' activities each week to receive income support, often working longer hours and in tougher conditions than those in urban areas.

Speaking to ABC Breakfast on Friday, Senator McCarthy said even while in opposition, Labor "recognised how problematic the CDP was". In contrast, she argued the RAES is focused on "encouraging people into the workforce" and "working with them on areas that they wish to improve upon".

"But, even more importantly... this is about co-design, working with communities," she said. "The providers who've been appointed... now have the responsibility to work with communities in collaboration, to be able to see these opportunities come out."

Last month, the government announced 49 organisations had been chosen to deliver RAES services across 60 remote regions.

The government says the program will provide job seekers with greater access to mentoring and support to stay in work. When work isn't available, providers will engage job seekers in local community projects designed to build practical skills.

"This is an exciting time. It's going to have bumps along the way, as all new programs that we're trying to roll out do, but I am quite excited about it," Senator McCarthy said.

"I urge providers and certainly communities to keep reaching out to me, where we can look at this, what's working, what's not, but this is quite significant for our country."

The announcement follows the government's $707 million RJED program, which aims to create up to 3,000 jobs over three years.

Labor's Special Envoy for Remote Communities, Marion Scrymgour, said RAES will "actively collaborate with communities to create work that is meaningful and can deliver long-lasting benefits".

"We know people in remote communities want to work, and the RAES and RJED programs will drive economic development in some of our most disadvantaged regions," she said.

Asked by ABC host Bridget Brennan about the need for more infrastructure and investment in remote Australia - referencing the "pointless jobs" created under previous programs which led to people feeling "disempowered doing them" - Senator McCarthy said the government has already been "rolling out jobs" as part of the RJED program.

"So, it's working in unison with that. It's quite important to recognise that of the 3,000 jobs that we've been trying to roll out across these places, we've got about 1,700 in place now," she said.

"We've seen communities really take this on and so we want to see more come onto the program. So, RAES is about getting people job-ready, but making sure we're doing it in a way that they can also say what they need."

The government says RAES will give local communities greater flexibility to design solutions that meet their employment and business needs, while creating tailored pathways to job readiness.

Under the program, providers must allocate at least 25 per cent of their funding to developing community-led projects that create real job opportunities and support local enterprise.

Job seekers can call a dedicated RAES Transition Line on 1800 306 182 if they have any questions about their providers, or call Services Australia if they have questions about their income support payments.

More information about the Remote Australia Employment Service is available online.