It comes as the NT Government is pushing through laws targeting children which will remove detention as a last resort, reintroduce the use of spit hoods, and allow a child's history of interaction with the criminal legal system to follow them into adult life, among other changes.

These have been widely condemned by Aboriginal leaders, legal experts, and human rights organisations.

Senator Lidia Thorpe is joining with First Nations organisations to call on the Albanese Government to suspend federal funding to the Northern Territory for policing and prisons, until the Territory moves to reduce incarceration of First Peoples and children. 

The North Australian Aboriginal Justice Agency (NAAJA), the Northern and Central Land Councils, Justice Not Jails, and the National Network of Formerly Incarcerated Women and others have all called for the suspension of Commonwealth funding to the NT until they change direction. NAAJA has warned it is the only way to stem an escalating incarceration crisis.

Thorpe says this should start with the suspension of federal funding for NT Police after the Albanese government committed $205 million of federal funding to NT police in March.

New figures show the NT prison population has surged to 2,842 people — more than 600 higher than when the CLP took office. Almost 90 per cent are Aboriginal, and nearly half are being held on remand.

Reporting in the ABC this week revealed almost 400 Indigenous children have been held in the NT police watch houses over a six-month period, and that nearly 20 incidents of self-harm involving children have occurred in these watch houses.

Aboriginal organisations say Commonwealth money must now come with conditions — or be cut.

Quotes attributable to Lidia Thorpe, Gunnai, Gunditjmara and Djab Wurrung independent Victorian Senator:

"Today we’ve seen the recorded number of First Peoples who have died in custody surpass 600. At least 602 people have now died since the 1991 Royal Commission, 17 just this year.

"Where does it end? When will the federal government show some guts and leadership and step in to stop this?

"This week the extremist NT CLP government is pushing through a tranche of laws designed to harm our children. These kinds of laws directly contribute to more deaths in custody.

"If the Northern Territory Government won’t listen to the experts and communities, then the Commonwealth must act.

"I’m calling on the Prime Minister and Minister McCarthy to take strong action and immediately suspend federal funding until the NT stops abusing Aboriginal people.

"Hundreds of children are being locked in brutal watch houses, kids are self harming. This is torture, not justice.

"The Territory Government refuses to meet with Aboriginal leaders, and instead spends public money expanding this abuse. Not another cent should flow to them from the Albanese government until they end this war on our people and sit down with us to create real solutions.

"The federal government has real power in this space. They can withhold funding, and they can legislate minimum standards in line with our international human rights obligations.

"So far they have not used these powers, and they’ve been contributing to the problem.

"Shamefully in March, we saw the federal government give $205 million to the NT police, and incredibly the Albanese government branded this money as ‘closing the gap’ money. 

"Well it should be withdrawn and reinvested into our communities and our services.

"You can’t close the gap by locking our kids in cages. The NT Government is violating the rights of children every day, and the federal government is funding it. That has to stop.

"The federal government has no excuse to sit and watch while this cruelty and violence occurs against our people, and while the number of people dying in custody increases.

"Albanese needs to use the powers that he has to pull the NT into line, stop our kids from being harmed, and stop more of our people dying in custody."