The Victorian Aboriginal legal service says it was never consulted over new Victorian laws designed to make authorities consider past trauma inflicted on First Nations people in child protection cases.
The Children and Health Legislation Amendment (Statement of Recognition, Aboriginal Self-determination and Other Matters) Bill was re-introduced in state parliament on Tuesday to tackle the over-representation of Aboriginal children in care.
It would empower organisations like the Victorian Aboriginal Child Care Agency, and the Victorian Aboriginal Children and Young People's Alliance to have more power to intervene.
It also includes a statement of recognition of the impact of past policies on Aboriginal people.
A version of the bill was introduced last year but lapsed when the Victorian election was held in November.
The Victorian Aboriginal Legal Service represents families and children in the system and has long complained about how it operates.
The VALS says it was only invited to information sessions on the previous laws, could not give feedback on the new ones, and does not think many of the new provisions will have a substantive impact.
The government has been contacted for comment following the service's criticisms.
Last year, the Yoorrook Justice Commission inquiry was told by VALS there should be standalone legislation covering Aboriginal children in the protection system.
"VALS does not believe that the proposed legislation will have the impact that has been claimed and we are ready to work with the minister on reforms that will actually improve outcomes for Aboriginal children," the service's chief executive Nerita Waight said.
"Our children continue to be taken from their families at alarming rates.
"According to the Wungurilwil Gapgapduir report, Victoria has the highest rate of Aboriginal children in out-of-home care and the highest rate of Aboriginal children on care and protection orders."
Earlier, Child Protection and Family Services Minister Lizzie Blandthorn said the government's bill would "close the gap by expanding the role of Aboriginal agencies in delivering children and family services".
"We're taking that action to reduce the over-representation of Aboriginal Victorians in the child protection system," she said.
Victorian Aboriginal Child Care Agency chief executive Muriel Bamblett welcomed the move.
"The proposed bill enables us to not just stop the cycle of higher rates of Aboriginal child removal, it will also help address the cycle of family violence. Strengthening the whole family is the only way forward," Professor Bamblett said.
Chair of the Victorian Aboriginal Children and Young People's Alliance, Karen Heap, said systemic change would help keep more families together.
"The legislation contains principles that will guide decision-makers to promote self-determination and healing for Aboriginal children and families," Ms Heap said
"Aboriginal families can advocate for themselves and ask for accountability in a system that has historically contributed to creating trauma and disconnection."
Young Aboriginal and Torres Strait Islander people are vastly over-represented in the state's criminal justice system and also make up about 20 per cent of children in government care.
Last year, a landmark inquiry into the state's youth justice system found 70 per cent of Aboriginal children reported being racially abused and physically and sexually assaulted by police.
