Many are concerned that the latest Federal Budget will hit already disenfranchised groups the hardest, and a new study shows that it may be worst for Indigenous communities.

Reports say a big opportunity to support the single largest employer of Aboriginal Australians has been lost.

The Australian Centre of Excellence for Local Government (ACELG) says a lack of concrete support will only serve to widen the gap in Indigenous employment and broader social outcomes.

“Our research confirms that local governments are particularly important employers in rural and regional areas,” says ACELG Director, Associate Professor Roberta Ryan.

“This is a time to invest in regions and support local government as the highest employer of Aboriginal and Torres Strait Islander government workers.

“The sector needs continued support to plan for Aboriginal and Torres Strait Islander employees. An opportunity exists to invest in, educate, and strengthen the capability of the local government workforce to enable this.”

A report last week revealed that Aboriginal and Torres Strait Islander unemployment is rising faster than the non-indigenous population, with the Aboriginal and Torres Strait Islander unemployment rate four times higher in 2012/13.

The report says Australia is not on track to halve the gap in employment outcomes by 2018, and in over four years, employment outcomes for Aboriginal and Torres Strait Islander people have not improved in any jurisdiction - in fact, the gap has either widened or did not change.

“Plans by the Government to dissolve the COAG Reform Council make it harder for local governments to contribute to the COAG target related to the employment of Aboriginal and Torres Strait Islander people in the public sector. It is unclear what mechanisms the federal government has planned in COAG’s absence for facilitating critical intergovernmental dialogue on this important issue,” said Associate Professor Ryan.

With more than $534 million in cuts to Aboriginal and Torres Strait Islander government and agency programs on the way in the 2014-15 Budget, it seems the authorities are moving away from continued support.

Planned changes to Newstart including a six-month waiting period for people under 30 and a shift to the lower Youth Allowance for those under 25 are expect to hit Aboriginal and Torres Strait communities as well.