The Prime Ministers' chief advisor on Indigenous affairs, Warren Mundine, has angered members of his own council, with suggestions about further funding cuts in the portfolio post-budget.

The Federal Government cut funding to Indigenous programs by $534 million in the budget, but Mr Mundine says a further $600 million in savings could be made.

Mr Mundine says the federal budget measures are all about eliminating waste and there will be very little impact on frontline services.

"Most of these areas are the backroom stuff, so looking at the 150 program streams, collapsing that into five. Looking about the savings that we can do in Canberra into other areas and also then shifting, look at shifting some of the programs," he said.

"To me, for services on the ground, we won't notice it."

But Mr Mundine says the cuts are not enough and the Government can and should go further.

He will be meeting with the Finance Minister and the Treasurer to put forward the case for more savings of about $600 million.

"It's actually more than that, but I'm looking at $600 million in the next budgetary round in 2015," he said.

"We did some modelling on repair and maintenance of housing and there's no doubt from the modelling that we got back that you can save 24 per cent, 24 per cent on the repair and maintenance of housing, and you can save from 5, 10 per cent in other areas."

He says the savings can be made from programs across the country.

"It's quite a lot of money when you start looking at a budget, like we did with remote area housing with $3.6 billion, so you can imagine a saving of 10 or 5 per cent of that - that's quite a lot of money."

Mundine draws criticism from Indigenous council deputy

Dr Ngaire Brown, the deputy chair of the Indigenous Advisory Council says it is too early to talk about further cuts as the full impact of last month's budget is not yet known.

"I'm not quite sure where they're getting the current savings from in the first place, let alone making suggestions that we can trim another $500-600 million," she said.

"So without knowing the detail and without be reassured around the first round of cuts, I wouldn't be supporting any further calls and in fact, why can't we have the savings made from other portfolios, have that re-invested in Aboriginal and Torres Strait Islander affairs."

Dr Brown says the proposed savings were not discussed at a meeting of the council last week, and while everyone wants to spend funding more wisely further cuts are not advisable.

"The budget was discussed, absolutely, and we had been forewarned, as had everyone really that the budget was going to be tight. In terms of the recommendation to additional savings from the Aboriginal and Torres Strait Islander portfolio, without breaching my privacy requirements, I don't recall that being discussed," she said.

"It is a priority of the Government, and the Prime Minister has made himself the Prime Minister for Indigenous Affairs, so you would think that symbolically we are one of the key priorities that this country has."

Mr Mundine rejects suggestions that he is making decisions without the backing of his council and says from day one, the group's role has been to look at efficiencies in Indigenous Affairs and come up with a new way of doing business.

"Everyone's very clear in regard to that there are inefficiencies and waste within the system and it's very clear that we need to fix them," he said.

"So as I say, Indigenous services on the ground are actually delivering what we need to deliver to the Aboriginal communities and so everyone is very much on, you know, that thinking."

Mr Mundine says the Indigenous Advisory Council members should not be concerned about the possibility of more cuts.

"I didn't hear Professor Brown's comments but if she's talking about cuts, well we're not talking about cuts," he said.