Government backbencher Dennis Jensen is facing intense criticism from Labor and the Greens over his comments about remote Aboriginal communities, with both parties calling on the Prime Minister to publicly condemn him.

In a speech to parliament on Monday night, Mr Jensen said he did not think the Government should be funding people to live a "noble savage" lifestyle in remote Indigenous communities.

When he was prime minister Tony Abbott argued the Federal Government could not "endlessly subsidise lifestyle choices".

Mr Abbott was speaking in relation to a West Australian Government plan to shut down a number of remote Indigenous communities.

Mr Jensen, a West Australian MP, said he endorsed that position and did not think there should be specific policies singling out Indigenous Australians.

"In essence, if the noble savage lifestyle, à la Jean-Jacques Rousseau, the same one often eulogised, is true, then there is nothing stopping any Indigenous men or women from pursuing such an existence on their own," Mr Jensen said.

"Just do not expect the taxpayers to subsidise it."

Opposition Leader Bill Shorten responded to the comment by saying Mr Jensen was "away with the pixies".

Mr Jensen fired back immediately on social media, describing the Opposition Leader as "gutless" and challenging him to a debate "any time".

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Labor's spokesman for Indigenous Affairs Shayne Neumann has now called on the Prime Minister to step in.

"The Prime Minister and Indigenous Affairs Minister should condemn and repudiate the stance," Mr Neumann told the ABC.

He described the comments as evidence of the "right-wing extremist elements of the Liberal Party".

The Greens Indigenous affairs spokeswoman Rachel Siewert is also calling on the Coalition leader to act.

"Malcolm Turnbull should show leadership," Senator Siewert said. "We need an unreserved apology from Mr Jensen.

"Mr Jensen has displayed his extreme ignorance of Aboriginal culture, of the effects of colonisation, disadvantage and of our international obligations under various conventions."

Jensen calls for an end to Indigenous-only policies

Mr Jensen's full speech was delivered in Parliament as part of his contribution to the debate on Appropriation Bills.

The South African-born MP said he fought against the racist policies of apartheid, and "racism, whether positive or negative in intent, is still racism".

"I will be blunt: in my view, there should be no specific Indigenous policy. There should be no race descriptors," he said.

"There should be no definition of what it is to be Aboriginal, any more than, say, an Irish-Australian should have a definition and a percentage of Irish blood that he or she should have in order to be described as Irish-Australian.

"Self-identification is the key to this puzzle. Indeed, the only reason that this is done is due to the racist laws that we have here in Australia.

"The road to hell is paved with good intentions."