Prime Minister Scott Morrison has told Parliament he does not know when Indigenous children will have the same opportunities as non-Indigenous Australians.

Key points: The PM said the years of minimal progress for Indigenous Australians were "unforgivable"

The PM said the years of minimal progress for Indigenous Australians were "unforgivable" Latest Indigenous scorecard shows most targets still off track

Latest Indigenous scorecard shows most targets still off track Government promises to wipe university debts of teachers that spend four years in remote schools

The Opposition Leader and Mr Morrison spoke frankly as they made statements about the annual Closing the Gap report that showed minimal progress had been made towards reducing Indigenous disadvantage.

Bill Shorten told Parliament it needed to "admit racism still exists in 2019" if politicians are to stop "wasting the time of First Australians" with Closing the Gap reports.

Mr Morrison said the current situation was "unforgivable".

"I want Aboriginal and Torres Strait Islander children to have the same opportunity as any other child in this country," he said.

"But, it's not true for Aboriginal and Torres Strait Islander children growing up in Australia today, and it's never been true and I don't know when it will be true."

This year's Closing the Gap report revealed most targets were still off track.

The targets do not set out to have Indigenous Australians reach parity with the rest of the population, they are just goals for how much the gap in disadvantage will be closed.

Even then, only two of seven targets showed positive progress: Year 12 attainment and early childhood education.

Other goals around life expectancy, child mortality, employment and education showed very limited improvements.

In his first Closing the Gap statement, Mr Morrison said the limited progress towards closing the gap was not enough.

"This situation remains in an unforgivable state, but we will never rest as a nation until we change this for good," he said.

The Prime Minister said: "Progress may not be fast enough or far enough but ... we do always need to mark what's been accomplished."

Sorry, this video has expired PM says failing Closing The Gap program reflects Canberra's hubris

Mr Shorten said Parliament had let Indigenous Australians down.

"We should today acknowledge that it's not just the gap in life expectancy or health or educational results or employment opportunities, but the gap between words and actions," he said in his speech to Parliament.

"The truth [is] that there is still men and women being arrested, charged and jailed not because of the gravity of their offence, but because of the colour of their skin.

"If this Parliament cannot admit that racism still exists in 2019, then we're just wasting the time of our First Australians today."

HECS debts wiped for teachers who go remote

The Closing the Gap report card did highlight progress in some educational outcomes for Indigenous Australians.

"The biggest improvement has been in Year 12 attainment, where there has been a jump of 18 percentage points since 2006," Mr Morrison said.

The Commonwealth has vowed to waive the student debts of teachers who spend four years working in very remote communities.

More than 3,000 teachers and nearly 300 schools are expected to benefit.

"We want to get the very best teachers to go there," Indigenous Affairs Minister Nigel Scullion told AM.

Linda Burney made the point two-thirds of Indigenous Australians lived in urban areas. ( ABC News: Matt Roberts )

Labor frontbencher Linda Burney said the Prime Minister's HECS announcement ignored the fact 79 per cent of Indigenous people lived in urban areas.

"Yes, the issues in remote communities are shocking and they need to be addressed, but the Prime Minister and this Government ignore the fact that two-thirds of Aboriginal people actually live in urban environments," she said.

In his speech, Mr Shorten acknowledged the Coalition's HECS pledge.

"Commitment to education is welcomed ... we want more local Aboriginal people trained as teachers and nurses in Aboriginal communities," he said.

"To achieve real improvements there must be not just specific funding ... not just in the bush, but in our cities and suburbs where our First Australians also live."

Organisations supporting Aboriginal and Torres Strait Islander high school students will also receive a $177 million boost.

Goal tracking slips

The 11th annual Closing the Gap statement has shown just two of seven goals on track — one fewer than last year.

"While our people still live very much in third-world conditions in a lot of areas still in Australia ... we have to hold everybody to account," Indigenous health leader Pat Turner said.

Closing the Gap targets Early education — on track

Early education — on track Year 12 attainment — on track

Year 12 attainment — on track Life expectancy — off track

Life expectancy — Child mortality rates — off track

Child mortality rates — Employment — off track

Employment — Reading and numeracy — off track

Reading and numeracy — School attendance — off track

The disappointing results come amid a restructure of the Closing the Gap framework underway between the Commonwealth, states and Indigenous peak organisations.

"We now have an equal say, along with governments," Ms Turner said.

"We certainly expect in this next phase of Closing the Gap that the [health] investment will increase significantly.

"We're determined that this time it's going to be a very different kettle of fish."

The Closing the Gap agenda was developed by the Rudd government to track progress in reducing Aboriginal and Torres Strait Islander disadvantage in the areas of education, employment and health.

Mr Morrison said the Government had set about "fixing" the original framework.

"It didn't genuinely bring on board states and territories in making sure they have accountabilities and sharing the objective and process with Indigenous Australians," he said.

But Ms Burney was critical of the PM's decision to revise the targets.

"Those targets were realistic and appropriate and remain so today," the Indigenous MP said.

"Labor has argued there should be additional targets. There should be a justice target and a target around the removal of Aboriginal children."

Mr Morrison emphasised achievements had been made despite the gap between Indigenous and non-Indigenous Australians not closing.

Aboriginal and Torres Strait Islander people are living longer, the Prime Minister said, and children are staying in school for longer.