During its cross-examination, the Australian delegation admitted the government still had a lot of work to do to improve their plight.
Australia has come under attack for its treatment of Aborigines at a UN Human Rights Committee.
The committee, which is due to publish its official recommendations next week, expressed concern at the marginalisation and discrimination of Aborigines in Australian society.
It was particularly critical of mandatory jail terms for certain offences in parts of Australia, as well as the past policy of removing Aboriginal children from their families.
The UN statement comes at an embarrassing time for Australia, two months before the opening of the Sydney Olympics.
During its cross-examination, the Australian delegation admitted the government still had a lot of work to do to improve their plight.
The committee heard Aborigines are many more times likely to be arrested, detained and imprisoned than the rest of the population.
It expressed concern that, in two states, the policy of mandatory sentencing for burglary and property offences disproportionately discriminated against Aborigines who were more likely to commit such crimes, a charge the government denied.
It was also severely criticised for the policy in force until the late 1960s of removing Aboriginal children from their families.
This, it said, was a black mark on Australia's human rights record, which successive governments had failed to sufficiently address.
Committee members also berated Australia for not incorporating the UN covenant on civil and political rights into its national law. But the Australian delegation showed little enthusiasm.
Still smarting from UN criticism earlier in the year about racially discriminated against Aborigines, the Conservative Government is reviewing its co-operation with the UN Human Rights Committee system.