Mr Neumann replaces former Minister Jenny Macklin and also stands as the current Federal Member for Blair, a town known for its high Murri population.
Mr Neumann says he sought a position in Indigenous Affairs when ALP leader Bill Shorten chose his team.
Mr Neumann has previously criticised conservative parties for ignoring the ALP democratically-elected representative bodies in favour of hand-picked councils.
He has also called out the Federal Government for taking $42 million dollars away from Aboriginal legal services despite giving $2 million to mining and farming groups to defend themselves against Native Title claims.
The Howard Government abolished the Aboriginal and Torres Strait Islander Commission in 2005 in favour of a committee selected by the prime minister himself, while the Abbott government formed its own advisory council, sidelining the National Congress of Australia’s First Peoples.
However, both conservative government committees include Aboriginal leader Warren Mundine
Mr Mundine and Federal Indigenous Affairs Minister Nigel Scullion have been visiting communities, urging traditional owners to sign 99 year leases governing infrastructure and economic development.