The group was responding to a proposal from Indigenous Affairs Minister Mal Brough for controlling the spending of dysfunctional families through direct debit.
Reconciliation Australia says that the Government's policy position increasingly recognises that problem solving strategies won't work unless they are led by indigenous people themselves.
The Co-Chairmen of Reconciliation Australia, Jackie Huggins and Mark Leibler, said that while the plan may work for some communities it should not be seen as a viable "quick fix" for indigenous suffering.
"The Minister has been understandably shaken by conditions he has seen in communities and he is to be congratulated for listening to the concerns and ideas of local people, particularly the women," said Ms Huggins.
"RA encourages Mr Brough and the Government to consider these ideas in the context of their overall approach to Indigenous Affairs which recognises that imposed solutions don't work in overturning disadvantage.
"The whole idea of 'shared responsibility' revolves around shared decision-making," she said.
Ms Huggins and Mr Leibler said RA looked forward to seeing systemic measures included in the upcoming budget that addressed problems canvassed in the Minister's speech, such as overcrowding.
"Rather than blaming the victim or mistakenly explaining away problems like overcrowding in cultural terms, we need to get much better at understanding the reasons behind these problems and targeting resources to alleviate them," said Mr Leibler.
Reconciliation Australia says that access to financial services and financial literacy also need to be considered in promoting better money management in Indigenous communities.