In his final report on Indigenous policy, social justice commissioner Bill Jonas has labelled the Federal Government's "practical" approach to reconciliation a failure.

Dr Jonas says over the past five years, there has been minimal progress in improving the lives of Indigenous Australians and in some areas, such as life expectancy, there has actually been a decline.

He says while the Federal Government has increased funding for several projects, there are no benchmarks to check if anything is being achieved.

"Time and time again the Government has emphasised that the key focus of reconciliation should be on the practical," he said.

"While I have problems with that reductive and limited approach to reconciliation, it's crystal clear that the Government is failing on its own measures of success."