Minister for Indigenous Australians Ken Wyatt on Wednesday announced the National Co-design Group that would develop a model to take to Indigenous leaders, communities, and stakeholders around the country.

The group will be made up of 16 members, including co-chair Dr Donna Odegaard AM and former Victorian premier Jeff Kennett AC.

Dja Dja Wurrung Clans Aboriginal Corporation chief executive Rodney Carter said he was pleased to see the diverse voices in the new body.

Read more: First Peoples' Assembly of Victoria: North west representatives reflect on inaugural meeting

"From a Victorian perspective, it's good to see some Victorian representation," he said. "The people that have been appointed to it are very capable and are able to provide critical comment.

"It's good to see Jeff Kennett in as a previous premier. Even though he was under a conservative government, what we have seen with him since he left office is giving more social support to communities."

Minister Wyatt said the co-design group would work alongside the existing advisory group, led by Marcia Langton AM and Tom Calma AO.

"They will continue to advise and guide the process and keep it moving forward," he said.

The federal co-design group comes as Victorian traditional owners start work towards a Treaty with the Victorian government.

The First Peoples' Assembly of Victoria - the first democratically-elected body of Indigenous people in the state's history - met for the first time last month.

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The assembly will meet several times this year as they work to establish a framework for Treaty negotiations.

Mr Carter said the work that has started in Victoria could help inform a national conversation.

"The creation of the legislation around Treaty and what we're doing there is a really positive thing," he said. "Others can learn from us."

But Mr Carter said it was important for Indigenous people to engage in the process.

"Leaders that have this responsibility really need to step up," he said. "There will be people who don't understand that while it's important to hold people to account, they need to be reasonable as well.

"When it comes Indigenous affairs and policies, in the back of peoples' minds is always that trauma.

"We need to rally and get behind our leadership and support what they are doing, but at the same time, hold them to account."

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