"A major reason, although by no means the only one, we're languishing in meeting a number of targets is the uncertainty in government's financial effort over recent years", Rudd said.
There were improvements in reducing child mortality rates, increasing high school attendance and improving early childhood education, the report said.
The government yesterday released its 10th annual Closing the Gap report which measures progress in overcoming disadvantage in seven areas, the most important being a decade difference in the life expectancy between the races.
Last year, the only measure that was on track was the target to halve the gap in Year 12 attainment by 2020.
Indigenous Affairs Minister Nigel Scullion says while some targets are not on track to be met, there has been solid progress in other areas compared with a decade ago.
"A couple of simple things have turned it around", he told the ABC.
But the report made public on Monday shows the government struggling to meet majority of its targets, including a bid to close the 10-year gap in life expectancy between indigenous and non-indigenous Australians by 2031.
Wyatt has rejected suggestions the original targets were too ambitious.
A decade ago, Australia embarked on an ambitious roadmap to uplift its indigenous people, who have trailed the rest of the population in nearly every social and economic indicator.
The widespread optimism - so evident in the photographed faces of the crowd gathered outside Parliament House - was also fuelled by Mr Rudd's simultaneous introduction of the Closing the Gap campaign, which was to be a well-funded, co-ordinated national strategy to ameliorate the plight of our First Peoples.
Mr Wyatt said some factors that contribute to child mortality, including homicide and road accidents, will always be out of the control of Governments and this target should be re-worked.
"So I say today, let's not bash the targets, let's enhance the targets".
In a statement the delegates urged the Government not to abandon the existing Closing the Gap targets, but suggested several new targets could be included.
Prime Minister Malcolm Turnbull said results were improving, after Australia had been on track to meet just one target the year before.
Opposition Leader Bill Shorten pledged to add an indigenous voice to Parliament if there wasn't a bipartisan commitment to hold a referendum.
The scheme would provide survivors in the Northern Territory and the ACT with access to up to $75,000, if Labor is elected.