DARWIN - Australia's federal government could face legal action over its plans to scrap the permit system and seize control of 73 Aboriginal communities in the Northern Territory.

Flagged by the territory government today, the move follows mounting criticism from police, lawyers and Aborigines about a lack of evidence linking reduced child abuse to the land reforms

NT Attorney-General Syd Stirling today said Aboriginal communities territory-wide were angry, confused and talking of legal action.

He said the territory government was seeking advice from the Justice Department about what shape the commonwealth's proposed amendment to the Land Rights Act might take "and then what we as a government might do".

The Central Land Council and Northern Land Council (NLC) were expected to support any legal action and "present a united front", he said.

"If your rights are taken away there is generally a legal recourse and a legal challenge.

"This is critical to indigenous people in these communities... that permit is a signal to everybody else that they own that land.

"If that is taken away, and the views are that this is the first step, then you are beginning to unwind Aboriginal land rights."

Stirling said Aboriginal people embraced a number of Canberra's reforms, such as bans on alcohol, drugs, pornography and a focus on school attendance -- "where there are perceived links to abuse of children".

"But there is no acceptance and no understanding of any link between land acquisition, permits and the protection of children," he said.

NLC chief executive Norman Fry said scrapping the system was discriminatory, reckless and legally questionable.

Rampant tourism would be the result, instantly turning sacred lands into one of the world's most sought after backpacker destinations.

"Compulsory acquisition of private property without consultation is discriminatory and cannot be justified," Fry said.

"This short-sighted approach polarises complex issues and will inevitably lead to High Court legal action, international complaint and universal opposition from traditional owners and communities."

Fry said Aboriginal people were entitled to the same rights as other Australians.

"This must include ensuring that tribal Aboriginal people are not subjected to rampant tourism or rampant journalism," he said.

"Beaches and rivers in communities will be packed with sunbathing backpackers, four-wheel drives, recreational fishers and campers - at the expense of fragile ecosystems and the interests of Aboriginal people."

Federal Indigenous Affairs Minister Mal Brough said NT government could no longer hide behind the permit system for the lack of policing in indigenous communities.