The Australian Democrats have called on Reconciliation Australia to distribute its recent budget windfall of $15 million to local reconciliation groups in urgent need of resources.

Indigenous affairs spokesman Aden Ridgeway says many reconciliation groups survive on uncertain or small amounts of funding, despite carrying the weight of reconciliation work in this country.

Senator Ridgeway says it is useless waiting for leadership on this issue.

"Lasting relationships have to be formed on the ground, have to be formed within communities and that's where the resources need to be dedicated most of all where the campaign should occur," he said.

"We have to show the lead when the Government has no capacity to do so at all."