Indigenous Year-five students improved nearly 20 per cent in reading skills on last year’s results.
The tests are conducted every year on Grade three, five, seven and nine students around the country.
Since the tests have been conducted the number of Indigenous children meeting the national standard in reading for Grade-five children has gone up by 19.9 per cent, most of that within the last year.
Dr Chris Sarra of the Stronger Smarter Institute said the results were fantastic.
"It’s a sign that Aboriginal children and Torres Strait Islander children are working really hard," he said.
"But it’s also a sign that the teaching profession has been challenged and we’ve responded to that challenge."
But there were still areas that need improvement.
In numeracy, only 73 per cent of Indigenous students met the national standard compared to 95 per cent of their non-Indigenous classmates.
"As is often the case in these things, we’ve got to make time to pat ourselves on the back in some areas, but we should not be complacent," Dr Sarra said.
"There’s still quite a long way to go but we're headed in the right direction."
In new measures announced on Friday, up to 100 truancy officers will be deployed in Northern Territory communities for the start of term next year.
The NT government said it doesn't want people to be penalised but it could be one of the outcomes for repeat offenders.
