The legal changes come as the NT government announces former NSW Police Commissioner Karen Webb will co-lead an inquiry into the conduct of child protection workers in the case of Kumanjayi Little Baby, who was allegedly murdered in Alice Springs.
Sweeping law reforms, announced on Wednesday, are aimed at giving child protection workers more power to remove vulnerable children, NT Child Protection Minister Robyn Cahill said.
The bill asserts that a child's ethnic or cultural background cannot be a reason to leave them in an unsafe situation.
Ms Cahill said the Care and Protection of Children Amendment Bill had been worked on for a year and aimed to strengthen parental accountability and earlier intervention for vulnerable children at risk.
Child safety had not been given priority under current laws, she told reporters.
The proposed reforms follow the death of five-year-old Kumanjayi Little Baby, a name used in line with cultural traditions, who was allegedly murdered at a town camp near Alice Springs on Anzac Day.
Jefferson Lewis, 47, has been charged with her murder.
Three NT child protection workers have been suspended in connection with the case.
Under the new laws, the NT Department of Children and Families will be required to take steps to reunify children with their families while keeping safety and best interests of children at the forefront of risk assessments.
"Where it is safe to do so we want children with their families, but where it is not we will act decisively to give children the permanency, stability and care they deserve," Ms Cahill said.
She announced on Wednesday that an independent investigation would begin next week into the conduct of the Department of Children and Families in the case of Kumanjayi Little Baby.
Heading that investigation will be Ms Webb, and seasoned public sector official Greg Shanahan.