The rate of Indigenous children in youth detention was 26.1 per 10,000, an increase on the previous four years but overall the trend for this target showed no change from the baseline 2018-19 data.
Among Indigenous adults, the imprisonment rate was 2304.4 per 100,000 - 15 per cent higher than in 2023, and an increase of 30 per cent since 2019.
Suicide rates among Indigenous people are also worsening.
Catherine Liddle, Chief executive of SNAICC, the peak body for Indigenous children, said substantial change is needed or risk Aboriginal and Torres Strait Islander children being left behind.
"If we continue down this path, we will fail in our shared responsibility to protect and care for these children, and to give them the opportunity to succeed," she said.
The Productivity Commission's Selwyn Button said the review found governments had not taken enough "meaningful action" to meet their commitments under the Closing the Gap Agreement.
"The continued worsening of outcomes we've seen in some Closing the Gap target areas shows the importance of governments taking their commitments to the National Agreement seriously, and taking meaningful actions to fully implement the priority reforms," he said.
Overall, only four of the 19 targets are on track to be met, while another six are improving.
The target of a 15 per cent increase in land and sea Country covered by Aboriginal and Torres Strait people's legal rights and interests is on track to be met.
While life expectancy, the number of babies born at a healthy birth weight, and completion of tertiary education showed improvement but are not on track to be met.
Digital inclusion was measured in the latest data for the first time, showing more than 80 per cent of Indigenous people 15 years and older were using the internet daily.
Coalition of Peaks lead convener Pat Turner said while there is "real progress" in some areas governments must step up to improve the areas where there have been setbacks.
"Too often, we see delay, half-measures, and a failure to empower our communities with real decision-making power," she said.
"If we are to achieve lasting change, the solutions must be led by us, not imposed upon us.
"If we fail to work in an interconnected way, policies risk sounding good in theory but failing in practice."
