The Minister for Indigenous Australians Malarndirri McCarthy has reiterated that financial penalties are "on the table" for state and territory governments not meeting their Closing the Gap commitments, although she has not committed to a time frame.

Senator McCarthy said the existing National Agreement on Closing the Gap contained no penalties for failing to meet targets, and she had established a federal ministerial working group to look at the issue.

"I'm supported by my fellow ministers so that we can look at our federal funding agreements and how it is that we are interacting with states and territories," she told reporters ahead of a meeting with the Joint Council on Closing the Gap in Nipaluna, Hobart.

When asked about penalties, she said, "all options are on the table".

"That w

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