Handing down the 10th annual Closing the Gap report on Monday, the prime minister said four of its seven targets to improve indigenous health and welfare were not on track.

But he also announced the extension of a successful policy that has allowed indigenous businesses to win more than $1 billion in government contracts since 2015.

"The government must be the enabler of this success," Mr Turnbull told parliament on Monday.

"Too often we are quick to highlight the despondency which does nothing to help those who aspire to be like people that work hard and succeed all the time, all while being proud First Australians, Aboriginal, Torres Strait Islander Australians."

Opposition Leader Bill Shorten pledged to add an indigenous voice to parliament if there wasn't a bipartisan commitment to hold a referendum.

"I say to the prime minister and the government - we will work with you, but we will not wait for you," Mr Shorten told parliament.

Federal cabinet last year rejected the Referendum Council's proposal for a constitutionally enshrined indigenous voice in parliament.

But Mr Turnbull said he was waiting for an Indigenous Advisory Council to report back in April before making a decision.

"The important thing is that we do things with indigenous Australians, not do things to them," he said.

Mr Shorten also promised to compensate survivors of the Stolen Generation in the nation's two territories, while Mr Turnbull was waiting for advice from an indigenous body on how to support victims.

The prime minister said the latest Closing the Gap report showed the target to halve the gap in Year 12 attainment by 2020 remained on track.

Two more targets - halving the gap in child mortality by 2018 and having 95 per cent of all indigenous four-year-olds enrolled in early childhood education by 2025 - were also both now on track.

But the remaining four targets were lagging, including a key goal to close the 10-year gap in life expectancy between indigenous and non-indigenous Australians by 2031.

Work was under way to update the targets, with the deadline extended until October.

Former prime minister Kevin Rudd, who introduced the strategy after his apology to the Stolen Generations in 2008, said he isn't against a refresh.

"What I do oppose is if these targets are watered down to let governments, federal or state, off the hook," he told the National Press Club.

Indigenous Labor senator Pat Dodson said any news of progress, "microscopic as it might be", was refreshing.

One Nation leader Pauline Hanson on Monday revived her 1990s-era attacks on taxpayer money being spent on indigenous Australians, drawing sharp criticism from Labor.

Australian Associated Press