<p>Australian universities operate within a national context defined by ongoing disparities in Indigenous outcomes, as outlined by the ‘Closing the Gap’ framework. This paper argues that a fundamental change is necessary in how these institutions conceptualise and practice civic engagement, as well as moving towards incorporating Indigenous knowledges. By analysing existing Indigenous Strategy and Indigenous Research Strategies across Australian universities alongside an Indigenous rights-based approach (IRBA), this paper presents a comprehensive framework for universities to move beyond superficial reconciliation towards genuine decolonial transformation. Embedding Indigenous intellectual agency, establishing community-led governance, and adopting ethical, rights-based methodologies, including culturally responsive artificial intelligence (AI), can help universities better contribute to ‘Closing the Gap’ targets, align with national Indigenous research priorities, and authentically meet the research needs of Indigenous peoples and communities. It is also crucial to recognise that non-Indigenous scholars and researchers have the capacity and responsibility to create spaces for Indigenous knowledges within their disciplines, working collaboratively with Indigenous colleagues to address the disparities outlined in ‘Closing the Gap’ strategies and Productivity Commission reports.</p>