By the end of the century, Aboriginal and Torres Strait Islanders are projected to still be dying at a younger age than non-Indigenous Australians.
The prediction is among the latest data released on Thursday by the Productivity Commission in its update on Closing the Gap - bridging the divide of social disadvantage for Indigenous people.
The statistics include life expectancies for Indigenous people born in 2015-17, with males due to reach 71.6 years and females 75.6 years. The ages compare to 80.2 years and 83.4 years respectively for non-Indigenous people.
The results show an improved Indigenous life expectancy compared to people born in 2005-07, who lived up to 11 years less.
The latest figures mean Australia is not on track to achieve the target of equal life expectancy for Indigenous people by 2031.
Another Closing the Gap target was to cut by at least 15 per cent the rate of Aboriginal and Torres Strait Islander adults in prison.
"The target is worsening," the Productivity Commission reports.
By the end of June 2021, there were 2222.7 per 100,000 Indigenous people incarcerated, compared to 2142.9 two years earlier.
There has also been an increase in the number of Aboriginal and Torres Strait Islander children in out-of-home care.
In 2021 there were 57.6 per 1000 children subject to care, compared to 54.2 per 1000 in 2019. The data showed an improvement in the rate in the Northern Territory and NSW, and no change for Western Australia and the ACT, with all other states registering an increase.
Closing the Gap is a program agreed by government and Indigenous leaders to target 16 areas including health, education and job prospects for Aboriginal and Torres Strait Islander people.
The Productivity Commission is tracking the progress and releasing regular updates.