REMOTE indigenous communities in five states will share $44.1 million in federal funding for essential services such as power, water and sewerage.
The federal government will commit the money in the May budget towards improving municipal services in 340 remote indigenous communities in Western Australia, South Australia, Queensland, Tasmania and Victoria.
Municipal services are usually the responsibility of state and local governments but the federal government wants to chip in to improve health and wellbeing.
The money will be spent over the 2013/14 financial year.
The indigenous affairs department says work on the ground will start from July 1.
The department has yet to work out how the money will be divided between the five states and it will consult with service providers to examine priorities.
The federal opposition says the announcement reflected Indigenous Affairs Minister Jenny Macklin's poor negotiations skills with the states.
The commonwealth did not pay for municipal services, rubbish collection and so on in the suburbs of Australia, opposition indigenous affairs spokesman Nigel Scullion said.
"So why it is different for indigenous Australians?" he said in a statement.
"This is yet another example of the Gillard government being prepared to sit back and accept lower standards and have lower expectations for indigenous Australians."
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