Indigenous reliance on welfare dropping

Fewer indigenous Australians are reliant on welfare.

A new report by the Australian Institute of Health and Welfare shows the number of indigenous people receiving government payments has dropped as job prospects increase.

In 2012-13 about half of the nation's indigenous population said their main source of income was welfare, down from 63 per cent in 2002.

Those who said they received their income from work rose from 32 per cent in 2002 to 41 per cent by 2013.

But they're still earning a lot less than other Australians.

The average weekly income for indigenous households was $465 in 2012-13, compared to $869.