Job seekers in remote communities will face tougher rules than those in the city under a new work-for-the-dole program, as the Government tries to end "sit-down welfare".

The Federal Government's new scheme will force job seekers aged 18 to 49 to do work-for-the-dole activities for up 25 hours a week.

Nearly 30,000 people living in remote communities will have to work five days a week, 12 months a year under the program, to start in July next year.

The scheme already running in selected city and regional areas requires job seekers to take part for only six months a year.

It is part of the Government's response to the Andrew Forrest review into Indigenous employment.

Indigenous Affairs Minister Nigel Scullion has promised to consult communities in the coming months.

"I am determined to ensure that communities help us frame the activities that suit their particular needs and circumstances," Senator Scullion said.

He said the policy also included $25 million to support the establishment of new businesses in remote communities, such as butchers and hairdressers.

"These businesses will provide real work experience and, ultimately, real jobs in remote communities," Senator Scullion said.

Labor questions policy's 'authoritarian approach'

Labor's Indigenous affairs spokesman Shayne Neumann has questioned whether the policy breaches the Racial Discrimination Act.

"I don't know how their proposal's going to pass muster with the Racial Discrimination Act for a start," Mr Neumann said.

"What they seem to be doing is putting up policies which seem to make it harder for the lives of Aboriginal and Torres Strait Islander people, all with this sort of almost authoritarian approach."

But the Minister insists the scheme is consistent with the Racial Discrimination Act.

"There is no distinction between Indigenous and non-Indigenous job seekers," Senator Scullion said in a statement to the ABC.

"The policy is about improving outcomes in remote areas with weak labour markets, and applies to all job seekers in those areas," he said.

Mr Neumann said Labor also wanted to see more details about the $25 million included to support new businesses.

"If they're suggesting they're going to provide assistance to create employment and real jobs, not simply training for training's sake, that's not a bad thing," he said.

"But let the Government provide detail to the Opposition so we can actually examine what they're saying."

The Government will also be looking to employers, such as local councils, aged care facilities and schools, to supervise work-for-the-dole activities.

In July, Mr Forrest delivered his Creating Parity review of Indigenous employment and training, which became known as the Forrest review.

The controversial report recommended a cashless welfare system using cards that could not be used to gamble or buy alcohol.

It was handed to Prime Minister Tony Abbott, who described it as "bold and ambitious", but Mr Forrest said it held the key to addressing disadvantage and a lack of opportunities in remote Australia."