Indigenous leaders have criticised a government decision not to establish an official "voice" to parliament representing Aboriginal and Torres Strait Island peoples.
The government rejected the proposal for a constitutionally enshrined advisory body on Thursday.
Indigenous leaders had proposed the idea following a landmark summit.
The decision not to adopt the central recommendation is a blow to indigenous Australians, several leaders have said.
"Malcolm Turnbull has broken the First Nations hearts of this country," indigenous leader and activist Noel Pearson told the ABC.
The government argued that an indigenous-only representative body "would inevitably become seen as a third chamber of parliament" in addition to the House of Representatives and Senate.
Most Australians would not support the body in a national referendum because the idea was "inconsistent" with the principle of equal civic rights, it said.
A historic summit was held in May
Mr Pearson said there was "no reconciliation and recognition under this prime minister".
Jackie Huggins, from the National Congress of Australia's First Peoples, said it had sent "shockwaves" through communities around the country.
"People are disappointed that the Prime Minister and Cabinet has not heard the aspirations of Aboriginal and Torres Strait Islander people across the country," she said.
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