The Department of Aboriginal and Torres Strait Islander Policy, with about 230 staff and a $60 million annual budget, will move into the revamped Department for Communities, headed by Warren Pitt.
Mr Beattie said "mainstreaming" indigenous services would deliver better outcomes for Aborigines and Torres Strait Islanders.
Prime Minister John Howard was condemned by federal Labor and indigenous groups when he abolished the Aboriginal and Torres Strait Islander Commission and mainstreamed its operations to other departments.
Mr Beattie said his move was a "new concept".
But Aboriginal Local Government Communities Association of
Queensland president Vince Mundraby said it was disturbingly similar to the federal change.
"At first glance, the state is actually mimicking the federal government in regards to the realignment of indigenous programs and issues," Mr Mundraby said. "It's pretty disturbing."