A recent report released on July 29, 2025, indicates that while there are improvements in preschool enrolments, employment, and two land rights goals, significant challenges remain for Indigenous Australians.

The Productivity Commission's annual report reveals that Australia is falling short in achieving outcomes for Indigenous Australians, with only four out of 19 Closing The Gap targets on track.

Despite some progress in certain areas, alarming trends persist in incarceration rates, suicide statistics, and child developmental outcomes for Indigenous communities.

In 2025 alone, 17 Indigenous deaths in custody have been reported, accounting for over 28 percent of all custody deaths this year, highlighting a critical crisis.

In response to these troubling findings, Independent Senator Lidia Thorpe has called for urgent national action on deaths in custody, sharing the personal impact of her cousin's death.

Productivity Commissioner Selwyn Button emphasized the interconnectedness of these outcomes, urging collective action from governments to address systemic issues affecting First Nations people.

Button also referenced an independent review indicating that the government's commitment to transformational change has not been fulfilled.

He further noted that without sufficient progress on priority reforms, the situation for Indigenous Australians will not improve.

Other concerning statistics include that 50 out of every 1,000 Indigenous children are in out-of-home care, and the suicide rate stands at 31 per 100,000 Indigenous people.

Moreover, adult imprisonment rates for Indigenous Australians remain critically high at 2,304 per 100,000 adults, indicating a worsening trend.

Victoria has recorded the fewest declining outcomes, while the Northern Territory has seen the most significant declines in life expectancy, imprisonment, and child development.

Treasurer Jim Chalmers acknowledged the findings, agreeing on the necessity for further action to improve conditions for Indigenous Australians and commended Minister Malarndirri McCarthy for her collaborative efforts.