It says that while remote Australia covers 85pc of the continent and most of the nation's mineral resources, it is home to just 5pc of the population who are facing an impending social crisis.

"As Australians we need to revitalise Remote Australia by radically changing the way we govern and administer it,"Desert Knowledge chairman Fred Chaney said.

The scathing report states there is "clear evidence there is a failed state at the heart of our nation", which, if not addressed, will result in "dire economic, social, cultural, environmental and security consequences for Australia as a whole".

The report singles out a lack of government investment in basic infrastructure and the advocation of outdated land management systems as key areas in need of urgent address.

The report was prepared by remoteFOCUS, a group of concerned Australians with extensive experience in dealing with Remote Australia.

Its report, Revitalising Remote Australia, is being described as a prospectus on how to address the crisis facing Remote Australia and the apparent failure of successive governments - Federal, State and Territory - to achieve their stated goals for the nation's vast remote regions: regions encompassing Australia’s deserts and much of the tropical north.

Mr Chaney said the group wanted a major public discussion involving people from various perspectives and place on how Remote Australia should be administered and actively included in a modern integrated Australian nation.

"We need a national reality check about what is happening in remote Australia and we need new ways of looking at and meeting thi enormous crisis and challenge," Mr Chaney said.

"The social, health and economic challenges facing Indigenous people in remote Australia are amplified by the basic structural and governane failures taking place.

"The underlying way governments are structured, administered and policy is developed for the people and communities of Remote Australia will inevitably lead to incoherent andineffective government engagement in Remote Australia.

"To make a difference creative, workable alternatives need to be developed, and implemented."

* The Revitalising Remote Australia prospectus and details of the on-going community engagement process can be found at www.desertknowledge.com.au/remote FOCUS