Funding for first Indigenous treaty process in ACT budget

It comes as the ACT government allocates the first funding to begin a treaty process with the traditional custodians of the territory.

The ACT government has been advised Indigenous incarceration needs to fall by nearly a quarter in the next decade, a reduction significantly larger than the current target of 5 per cent by 2028.

Mr Barr said he presumed the ACT government would commit to the larger target.

"But the exact timing of when we do that, I will need to take some advice on. It's always a balance between ensuring that the targets are ambitious but at the same time realistic," Mr Barr told the Sunday Canberra Times.

Mr Barr announced the ACT budget would include $317,000 to develop the governance structure and administration of a 10-year $20 million Healing and Reconciliation fund.

Minister for Aboriginal and Torres Strait Islander Affairs Rachel Stephen-Smith said the investment showed the ACT government was committed to self-determination for Indigenous people.

"We've already heard loud and clear that a treaty process with the traditional custodians of this place, the Ngunnawal people, is a priority for the community. So part of that $317,000 will also be to facilitate a conversation with the traditional owners about what treaty means in the ACT and what a treaty process will look like," Ms Stephen-Smith said.

Katrina Fanning, the chair of the ACT Aboriginal and Torres Strait Islander Elected Body, said the long-term funding commitments were welcome and showed self-determination in action.

Ms Fanning said the first step in the treaty process needed the Ngunnawal people to decide how the process should run.

"I'm not a Ngunnawal person, I'm from Wiradjuri country, so for me it's not my place to say except that Ngunnawal people should be front and centre in deciding the process for what happens on their country here," she said.

The budget will also include $4.9 million to continue implementing the recommendations of the Our Booris Our Way review into Indigenous over-representation in the territory's child protection system.

The Gugan Gulwan Youth Aboriginal Corporation will receive $425,000 to build a new facility, and $1.6 million will be allocated for supporting Aboriginal and Torres Strait Islander families across housing, child protection and other family support programs.

The ACT government will also work towards the establishment of an Aboriginal and Torres Strait Islander community controlled housing organisation.

Housing Minister Yvette Berry said the budget allocation would allow the ACT government to continue working closely with the Aboriginal and Torres Strait Islander community to have community controlled organisations up and running "as soon as we possibly can".

"We've been hearing for a very long time from the Aboriginal and Torres Strait Islander community that it's important to have Aboriginal and Torres Strait Islander people represented in these rolls and so we're going to make sure through this commitment," Ms Berry said.