Indigenous remote living a lifestyle: PM

Labor is demanding Prime Minister Tony Abbott apologise for telling indigenous Australians in remote communities taxpayers shouldn't fund their "lifestyle choices".

While backing the WA government's plan to close 150 remote communities, Mr Abbott declared governments couldn't "endlessly subsidise" people who choose to live far away from schools and jobs.

"It is not the job of the taxpayer to subsidise lifestyle choices," Mr Abbott told ABC Radio in Kalgoorlie on Tuesday.

"Fine by all means live in a remote location, but there's a limit to what you can expect the state to do for you if you want to live there.

"What we can't do is endlessly subsidise lifestyle choices if those lifestyle choices are not conducive to the kind of full participation in Australian society that everyone should have."

Opposition indigenous affairs spokesman Shayne Neumann demanded a public apology to all Australians for the "deeply disturbing and highly offensive" comments.

"This is a prime minister who doesn't understand the importance of these people to their connectivity to their land," he told AAP.

Mr Neumann accused Mr Abbott of trying to undo any progress made in closing the gap of indigenous disadvantage.

The prime minister said it was reasonable for state governments to stop funding services in remote communities if the costs were out of proportion to the benefits.

Australian Greens senator Rachel Siewert slammed the comments as "unbelievably racist" and completely out of touch with reality.

Mr Neumann said the self-declared prime minister for indigenous affairs had form in this area, referring to Mr Abbott's claim that Australia was unsettled before British "foreign investment".

"He has trashed his reputation, he doesn't deserve that title," he said.