The Federal Opposition is accusing the Turnbull Government of failing to consult on the recently announced Royal Commission into youth detention, saying a bipartisan approach is "crucially important".

In an interview with the ABC on Wednesday morning, Treasurer Scott Morrison indicated that Prime Minister Malcolm Turnbull was "consulting" with key stakeholders which included Labor.

But by Wednesday afternoon the Shadow Attorney-General Mark Dreyfus said no contact had been made.

"The terms of reference for this Royal Commission should not be finalised without the input of advocates, experts and communities in the Northern Territory, as well as the Opposition," Mr Dreyfus said.

"There must be no contention about this inquiry. It is too important."

Draft terms of reference for a Royal Commission will be taken to Cabinet on Thursday, however the Prime Minister is resisting calls to expand it to look into youth detention abuse outside the Top End.

"This will be clearly focused on the Northern Territory, will be focused on the failings of the youth detention system there," Mr Turnbull said.

"If you spread it out to be an all-Australia inquiry, it would go on for years and you won't get the answers you need in respect to the Northern Territory."

Labor’s senator for the region, Malarndirri McCarthy, agreed the focus should be on what happened in the Don Dale Centre.

"My concern firstly is for the people of the Northern Territory," the newly elected senator said.

"There may be very serious concerns in every state and territory about the treatment of their youth and of course that should be looked into."