Oversight key to Aboriginal independence

Efforts to tackle disadvantage and promote economic independence in Aboriginal communities will likely fail without strong oversight, warns the NSW acting ombudsman.

In a special report to be tabled in state parliament on Tuesday, acting ombudsman John McMillan will argue that a robust and flexible framework, and the appointment of a suitable oversight body are critical to ensure government efforts to foster economic development for Aboriginal people in NSW are successful.

It comes as the state government develops an Aboriginal Economic Prosperity Framework for NSW.

Professor McMillan warns the strategy's success will hinge on whether there's a strong body to implement it.

"This could be a new entity, or an existing one, as long as it possesses the skills, experience and clout to drive the implementation in partnership with the business community and Aboriginal leaders," he says.

The report argues that simply increasing job opportunities will not be enough, with significant obstacles impeding Aboriginal economic development.

"Those barriers include poor educational attainment, comparatively high rates of incarceration, financial exclusion and low rates of home ownership," Prof McMillan says.

"It is also important to encourage wealth creation and to assist people to turn their lives around."

This can be achieved by support to obtain finance, pay off debts, or participate in small business enterprises, Prof McMillan says.