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The Aboriginal and Torres Strait Islander Social Justice Commissioner says he is confident of achieving constitutional change by 2013.
In an address to the National Press Club, Mick Gooda committed to work towards a referendum which would recognise Aboriginal and Torres Strait Islander people in the Australian Constitution.
He says there is strong cross-party support.
"In all likelihood there will be a referendum within the next three years," he said.
Mr Gooda also acknowledged concern about the financial cost of a referendum and calls for the funds to be practically invested to close the gap between Indigenous and non-Indigenous Australians.
"This process will give this generation of Australians the opportunity to say 'yes'. An opportunity to demonstrate goodwill and innate decency," he said.
Mr Gooda estimates between 12 million and 13 million people would need to respond with a yes vote to trigger constitutional changes.
He also says momentum towards reconciliation faltered after the apology to the Stolen Generations.
He says national surveys still highlight widespread racial prejudice.
"When the national apology was made in February 2008, I believed Australia was ready for this new, stronger, deeper relationship," he said.
"The nation took a great leap forward that day - but somehow soon after that we lost momentum and despite much of the goodwill on both sides of the paddock, there are several issues we have to confront as a nation to reset this relationship."
Mr Gooda says he initially felt mixed emotions when appointed for the five-year term as commissioner, about nine months ago.
He says he is driven by hope and the possibility of change.
"I can assure you the priorities are underpinned by two unshakeable and personal commitments," he said.
"The first is my commitment to addressing the disadvantages still faced by Aboriginal and Torres Strait Islander peoples; the second is my commitment to doing all in my power to achieve a truly reconciled Australia."
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