"He just cannot believe that Australia has failed Aboriginal Peoples so badly and nor can I!"
Are you complaining about a unequal treatment or unequal outcomes?
Far from failing Aboriginal people, modern Australia treats them far better than than the rest of the population. We are all (supposedly) equal under the law but there are are additional levels of financial and social support for anyone claiming ATSI status even if their socio-economic circumstances are far better than someone of another race.
Unequal outcomes are a different matter. Australia is treating Aboriginal people better than anyone else. Despite this treatment the outcomes are terrible and the blame is sheeted home to the government / racist Australia. Frankly there is overt discrimination in favour of ATSI people in all levels of government. The poor (average) outcomes seem to come from the action and abilities of ATSI people themselves (we are talking averages, not individual people).
There are individual racists in society, nobody denies this. But the whole of government machinery is stacked for favourable treatment of ATSI people. To assert Australia is racist on this basis is groundless.
