The average daily number of Aboriginal and Torres Strait Islander people behind bars increased by seven per cent over the last year, according to the latest figures.
The Bureau of Statistics figures are in line with an overall increase in the number of incarcerated people around the country, which rose by more than 2500 persons since the June quarter of 2016.
Since the same period in June 2012 the number of persons in custody has increased by 40 per cent.
An inquiry into the over-representation of Indigenous Australians in prison is currently underway.
The Australian Law Reform Council was asked earlier in the year to examine the laws, frameworks and institutions contributing to the current rate of incarceration, with a report due by the end of the year.