The reforms are based on a working group's recommendations that considered how future generations of native title groups will benefit from development on their land.
The recommendations include considering statutory trusts to hold native title benefits and a creation of an Indigenous not-for-profit body for communities.
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The Attorney-General Mark Dreyfus told the ABC it's about ensuring a lasting economic benefit.
"It's to make sure that compensation payments under the native title regime don't just benefit a small number of individuals in Indigenous communities here and now, but go on to create lasting economic benefit for Indigenous communities."
