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As an Australian, I think this is all just performative. The body would be consultative only, meaning no real power. Meanwhile, the right wing Liberal government have let virtually all the closing the gap objectives go unaddressed. If I remember correctly, only 2 out of 7 objectives are on track.
It does seem like a move designed to both placate and stir the hive. I think there are 17 goals, most are behind.