The Productivity Commission has exposed the ongoing failure of state and territory governments to alleviate Indigenous disadvantage in Australia.

Three years after the groundbreaking national agreement on Closing the Gap was signed, the new report highlights how some governments continue to make decisions that undermine their commitments and worsen the situation for Indigenous Australians.

One of the report's examples focuses on Queensland's bail laws, which have contributed to soaring rates of Indigenous incarceration. 

The changes to bail laws mean more Aboriginal and Torres Strait Islander young people are incarcerated for extended periods, exacerbating an already alarming issue. 

The report reveals that Queensland has one of the highest rates of Aboriginal and Torres Strait Islander youth in detention.

Another concerning case involves the Northern Territory government, which made changes to alcohol restrictions in July 2022 without adequately consulting with Aboriginal communities. 

The lack of consultation raised serious concerns about the impact on Indigenous people.

The Productivity Commission's draft report says many government decisions disregard or contradict their commitments in the Closing the Gap agreement, further perpetuating disadvantage and discrimination against Indigenous communities. 

The report particularly highlights the shortcomings in youth justice systems.

Despite the 2020 national agreement outlining four key reforms, including formal partnerships, Aboriginal and Torres Strait Islander community-controlled sectors, better government organisations, and improved access to data, progress has been sluggish and fragmented. 

The commission points out that governments have not fully embraced the necessary changes to deliver on their promises.

The report also calls out the lack of genuine collaboration between government agencies and Indigenous communities, stressing that predetermined solutions are not enough. It urges a shift towards co-designing solutions with Indigenous perspectives.

In response to the draft report, Queensland's Deputy Premier Steven Miles defended the bail law changes, stating that the government prioritises both Closing the Gap goals and community safety.

The commission's final report, expected to be delivered to the Joint Council on Closing the Gap later this year, will include several draft recommendations, one of which proposes appointing a senior leader or leadership group in each jurisdiction to drive meaningful change.

Minister for Indigenous Australians Linda Burney acknowledged the report's findings and stated that there is much work to be done to achieve all four priority reforms outlined in the agreement. 

The full report is accessible here.