The annual literacy test in New South Wales primary schools has shown not enough is being done to improve basic skills among Aboriginal and Torres Strait Islander pupils.

The Deputy Premier and Education minister Andrew Refshauge says the results of this year's basic skills test for years three and five show that students from non-English speaking backgrounds are still performing well above the state average.

However Dr Refshauge concedes that more can be done to boost literacy and numeracy skills among students from Indigenous backgrounds.

"We need to put effort there, we have been but we certainly need to do better," he said.

"There's a whole range of reasons and I think they aren't particularly educational reasons, but often it's a matter of health or social circumstances."