New data shows "significant deserts" and service gaps are contributing to worsening rates of incarceration and childhood development for Aboriginal and Torres Strait Islander peoples.
Just four of the 19 Closing the Gap targets are on track to be met, according to the latest data from the Productivity Commission.
But key targets, including adult imprisonment rates, children in out-of-home care, suicide and childhood development, are continuing to worsen.
The report comes as the number of First Nations people who have died in police or prison custody exceeds 600 deaths since a landmark royal commission handed down recommendations in 1991.
Productivity commissioner Selwyn Button said the review shows the outcomes of the agreement are falling well short of what governments have committed to.
The review found Indigenous community-controlled organisations are key to progress, and governments must listen to First Nations people and share decision-making power to create positive change.
"What the outcomes in the agreement reflect most of all is the limited progress of governments in collectively acting on the priority reforms: sharing decision making and data with communities; strengthening the Aboriginal Community Controlled sector and changing the way governments operate," he said.
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Factbox: What is Closing the Gap?
Catherine Liddle, the CEO of peak Aboriginal advocacy body SNAICC, told Radio National the four improving targets are ones "the government truly committed to".
These targets are preschool program enrolments, employment, and land and sea native title and legal rights.
She said the government needs to "lean in and try harder" to address "significant deserts and gaps" in social services.
In particular, early childhood support needs to see improvement, she said, as preschool enrolments have a limited effect if children aren't prepared for school.
Only 33.9 per cent of children starting school were developmentally on track, a decrease from previous years.
The report also found that more than one-third of kids in youth detention last year first entered the system when they were 10–13 years old.
— With additional reporting by the Australian Associated Press
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