A historic partnership between the federal government and Aboriginal and Torres Strait Islander people to leverage land and Native Title, boost skills, create jobs, and support business was signed at Parliament House on Monday.

The First Nations Economic Partnership — an alliance between the government, the Coalition of Peaks, and the First Nations Economic Empowerment Alliance — was first announced at Garma last month and was formally signed by Treasurer Jim Chalmers and Minister for Indigenous Australians Malarndirri McCarthy.

"The signing of this Economic Partnership is historic. Australia has never had such an agreement," First Nations Economic Empowerment Alliance Chair, Professor Peter Yu, said.

"The economic self-determination of Indigenous peoples has received little attention, and our communities have never been given a chance to shape our own economic futures. Today that changes."

The federal government has described the agreement as an example of its commitment to the Priority Reforms of the National Agreement on Closing the Gap, which calls for government to work in partnership, invest in the First Nations community-controlled sector, and transform mainstream systems to achieve better outcomes for First Nations people.

Coalition of Peaks Lead Convenor, Pat Turner AM, welcomed the signing but stressed the real test lies in its implementation. She said she looked forward to working with the government to deliver "real outcomes".

"This Partnership will take forward what Aboriginal and Torres Strait Islander people told the Peaks through a nationwide engagement – that strong community-controlled organisations are the foundation for jobs and economic participation for our peoples," she said.

"The signing today must translate into genuine shared decision-making, proper investment in our community-controlled sector, and measurable economic outcomes for our communities."

The alliance of Indigenous peak bodies has said the agreement aims to "advance economic empowerment and lasting economic security for Aboriginal and Torres Strait Islander people, communities, and organisations".

The government has committed $75 million to support Prescribed Bodies Corporate (PBCs), $70 million for Indigenous clean energy projects, and $31 million for a mobile TAFE program.

"This Partnership puts First Nations decision-makers in the driver's seat when it comes to steering economic outcomes," Mr Chalmers said.

SNAICC CEO and Coalition of Peaks Deputy Convenor, Catherine Liddle, pointed to the growth of the care economy and the opportunities it should create for Aboriginal and Torres Strait Islander people.

"The community-controlled sector is the obvious vehicle for achieving more jobs for our people," Ms Liddle said.

It says the first priorities for the Partnership will be to consider reforms to the funding model for PBCs to deliver meaningful participation for communities and timely decision-making for investors. Senator McCarthy described it as a "new approach to First Nations economic policy and economic prosperity".

"By working together, we are unlocking the potential of land, culture and community to drive prosperity, not just for today, but for generations to come," she said.

Professor Yu said the Alliance is focused on offering a framework that delivers "real fiscal reform and structural change — including improved access to capital, Indigenous-led investment, and greater involvement in the Australian economy".

"The challenge is now before Australian policymakers, industry and our communities to take up this opportunity for genuine economic innovation and reform. Indigenous peoples are not a debit on the national balance sheet," he said.

"This partnership can demonstrate that we are principal partners in the economic future of Australia."

In a statement, the government said the Partnership will also examine how Special Investment Vehicles such as the Northern Australia Infrastructure Facility and the Australian Renewable Energy Agency can better deliver for Indigenous communities.

Mr Chalmers argued it is about helping First Nations Australians "secure more of the jobs and opportunities that we're creating in our economy".

"It will ultimately mean more support for First Nations workers and businesses, better skills and training pathways for First Nations people and more participation in the economic projects that create opportunities for First Nations communities," he said.

For Ms Turner, sustained investment will be key.

"This Partnership must deliver that investment, not through short-term grants but through sustained funding that allows our organisations to plan, grow, and deliver," she said.

"Today's signing is welcome, but signatures alone don't create jobs or build economic security. We will be working closely with the other Partners to make sure every commitment is delivered."