State and territories will be given their own sets of targets to help close the gap on indigenous disadvantage.
Prime Minister Malcolm Turnbull announced the development following a meeting with his state and territory counterparts in Canberra on Friday.
The leaders heard from indigenous representatives, who expressed a desire to be equal partners and "to have real skin in the game", he said.
"It demonstrated our shared commitment to do things with and not to Aboriginal and Torres Strait Islander people," Mr Turnbull said.
"I think that was a humbling experience for all of us," NSW Premier Gladys Berejiklian said.
The Close the Gap review has had its time frame pushed out until October.
