Jail a badge of honour for some Aboriginals: report

Mining magnate and philanthropist Andrew Forrest says jail is a "badge of honour" in some Aboriginal communities after the release of a report showing dismal progress on eradicating indigenous disadvantage.

As Tony Abbott declared the results of the latest Closing the Gap report card "profoundly disappointing", Mr Forrest and Labor called for a target to cut indigenous incarceration rates.

Mr Forrest completed a report for the Prime Minister last year, recommending an overhaul of indigenous training and education programs.

But his boldest proposal was for a "healthy welfare card" for all welfare recipients except aged and veterans pensioners that would ban them spending payments on alcohol or gambling.

He told _The West Australian _ the Government was doing impact studies of his recommendations but warned they must not be cherrypicked.

"Only seismic change to the system will lead to the end of the disparity," Mr Forrest said.

"Rather than chip away at closing the gap, we should be out to end disparity completely."

Mr Forrest said a big indicator of disadvantage that must be addressed was jailing rates, with as many indigenous children locked up as finishing school.

"In some communities it is a badge of honour to go to jail instead of school," he said.

Mr Abbott said this year's report was "profoundly disappointing" because most targets were not on track to be met.

There was no overall improvement in literacy and numeracy since 2008, limited progress on better life expectancy within a generation, less employment since 2008 and a failure to get 95 per cent of indigenous four-year-olds in remote communities enrolled at preschool.

However, halving the gap for child mortality was on track to be met by 2018 as was the 2020 target to boost Year 12 graduations.

Mr Abbott said the Government was already acting on many recommendations in the Forrest report to increase indigenous employment and end truancy.

He indicated the Government was looking at the healthy welfare card, which with better policing would reduce jailing rates.

"If we can make this work, it will ensure that people are spending their money on the kinds of things that will help them rather than the kinds of things that will hurt them," he said.

Opposition Leader Bill Shorten criticised the Government for slashing $500 million for indigenous health, families, domestic violence and legal aid services.

"We are compelled to point out what these cuts mean," he said. "It is not too late to seek to repair the harm."

The comments riled about 10 Government MPs, including WA Liberal Melissa Price.

"It was disrespectful to indigenous people and represented cheap point-scoring," she said.