Opposition Leader Tony Abbott has unveiled plans to establish an Indigenous advisory council to help tackle disadvantage in Aboriginal communities.

Mr Abbott, who has long taken a personal interest in Indigenous affairs, also vowed to do whatever he can to improve Aboriginal land rights if he wins office.

Hitting the campaign trail at the Garma festival in north-east Arnhem Land, Mr Abbott confirmed the council would be chaired by former Labor Party president Warren Mundine.

He described Mr Mundine as his "kindred spirit", and said he would promote a philosophy of commercial development and self-help at the helm of the council.

"He is a natural leader and a forthright advocate for Indigenous Australia," Mr Abbott said in a statement.

"I hope to be a prime minister for Aboriginal affairs and am delighted that Warren Mundine has taken up the call to be part of this journey.

"If lasting change is to be achieved in this area, it has to be broadly bi-partisan and embraced by Aboriginal people rather than simply imposed by government."

Mr Abbott said the council would draw on the knowledge of both Indigenous and non-Indigenous Australians, and would meet with the prime minister three times a year.

During a passionate address, he talked about the need to get children back to school and adults into work, as well as boost Indigenous housing standards.

Abbott makes land rights pledge

Mr Abbott was introduced by Galarrwuy Yunupingu, who called on the Opposition Leader to improve land rights for Aboriginal people.

Mr Abbott said it is "very important that white fellas and black fellas open their hearts to one another".

"It is all very well having the right to live on your land, having the right to walk over your land, having the right if necessary to exclude people from your land," he said.

"But land has to be an economic asset as well as a spiritual asset and I will do whatever I humanly can in government to bring this about."

The Opposition Leader committed to spending one week each year in a remote Indigenous community - something he has done since his days as a Liberal backbencher.

He made a first-term commitment to recognise Indigenous Australians in the Constitution, saying the nation's "soul would not be whole" until that happened.

Mr Abbott also repeated a pledge to move responsibility for Indigenous affairs into the department of prime minister and cabinet.

Mundine: a critic of both major parties

Mr Mundine, who decided not to renew his Labor Party membership six months ago, has at times criticised the Indigenous affairs policies of both parties.

He says he is a fan of Indigenous Affairs Minister Jenny Macklin's work, but believes the Government's policy lacks a focus on encouraging economic development.

"Commercial activity creates jobs and gets communities moving ahead," he said.

Warren Mundine is the Coalition's newly-appointed Indigenous advisor ( Alan Porritt, File photo: AAP )

Mr Mundine, who now serves as the executive chairman of the Indigenous Chamber of Commerce, will outline his radical plan for change in a speech tonight.

He is expected to call for the abolition of scores of Indigenous governance bodies and changes to land ownership.

"If we are going to make the big difference in Indigenous communities then it has to be about how we can free them up so the communities make their own decisions," he said this morning.

Opposition frontbencher Christopher Pyne says Mr Mundine's appointment is "the smart way to go".

"Warren Mundine ... obviously crosses the political divide, having served in the Labor Party," he told Sky News.

"What Tony Abbott is doing is ensuring Indigenous issues become a bipartisan issue and he's making it a personal crusade of his own.

"I've seen how he interacts with Indigenous people and I've seen his genuine and real concern to address the issues in Indigenous Australia."

Rudd criticises Liberal Party's Indigenous affairs record

Prime Minister Kevin Rudd has welcomed Mr Mundine's appointment, saying the Aboriginal leader is "over and above politics".

"He will provide advice to anyone and everyone about what should happen with Indigenous policy," Mr Rudd said, adding that his door is always open to Mr Mundine.

Mr Rudd said if he has one ambition in life, it is to ensure closing the gap with Indigenous Australians is "taken out of the political ruck".

"And we get to a stage where all Australians realise this is a national mission for us all," he said.

"We are judged by the rest of the world on these questions and rightly so, and we will be judged by our children as to whether we have got this right."

Mr Rudd said the Government has a strong track record in Indigenous affairs, adding the Liberal Party could not say the same thing.

"On something as basic as the apology to the first Australians, we did wait many, many years for that to happen under Mr Howard's government of which Mr Abbott was a senior minister," he said.

"It didn't happen. It was the first action of the Government that I led back in 2008.

"I think we have a track record of engaging seriously with the challenges in Aboriginal Australia, including the first ever national agreement with the Commonwealth and states on investing in closing the gap, in education, health, employment and all the rest with Indigenous Australia."

Labor on Friday announced it would add three new targets to it Closing the Gap policy to address justice, disability services and higher education.

Ms Macklin also pledged $15 million to help communities develop alcohol management plans and fund community-driven solutions to alcohol and drug abuse.

She also promised to direct more government funding to Aboriginal organisations to boost employment in remote areas and help people escape reliance on welfare.