NSW government agencies need to overhaul how they work with Indigenous communities, the state's most senior public servant says, after noting Aboriginal children make up almost half of young people in foster care.
Around 43 per cent of children in NSW foster care are Indigenous, compared to 35 per cent a decade ago, and that rate has increased every year, a NSW budget estimates hearing was told on Monday.
Department of Premier and Cabinet Secretary Michael Coutts-Trotter said the higher proportion of Indigenous children in care was due to a fall in the total foster care population.
New interventions have meant fewer Indigenous children are entering out-of-home care, he said.
"What is very clear though is if we are to make further significant progress, we won't achieve that by simply running the system we have harder and faster," Mr Coutts-Trotter said.
"We have to make some fundamental changes to the way non-Aboriginal agencies engage with Aboriginal people, communities, and Aboriginal controlled organisations."
Aboriginal Affairs Minister Ben Franklin said he was aware of the foster care figures, which were flagged as a priority issue by former Liberal premier Gladys Berejiklian.
"I am deeply concerned about the high rates of Aboriginal children who are in out-of-home care and the impacts felt on those children and their families and their communities," Mr Franklin said.
Labor MP Penny Sharpe, who's a member of the budget estimates committee, says the level of HSC attainment among Indigenous people has also gone backwards.
Ms Sharpe asked how much support the government was providing Indigenous communities in the flood-ravaged Northern Rivers region, including whether the Koori Mail, a newspaper central to recovery efforts, had enough resources.
Mr Franklin said it had been granted $40,000.
"I'm open to providing whatever support is required," he said.
"If more funding is required, then I'll make a personal commitment to doing all I can do to get it."