The Indigenous Voice, as it was called, would have been an Aboriginal and Torres Strait Islander group to advise the government on issues affecting their communities.

Prime Minister Anthony Albanese, who championed the plans, admitted on Saturday the result is "not what we hoped for" and that the country must "seek a new way forward".

Opinion polls in recent months had indicated an overwhelming number of Australians opposed the proposal, despite early support.

And with almost 70% of the votes counted so far, the 'No' campaign appears to be well ahead with at least 60% of the ballot share.

Various TV networks have projected that a majority of voters in all six of Australia's states will vote against the plans.

Constitutional change requires a majority of votes both nationwide and in at least four of the six states.

Mr Albanese hit back at critics who argued the plans had already caused division in the country.

"The No campaign has spoken about division while stoking it," he said, adding the real division is in the difference in living standards between indigenous people and the wider community.

Aboriginal elder, Aunty Shirley Lomas, says non-indigenous Australians have a "fear that's so engrained" when it comes to her community.

"We live and breathe racism every day," she told Sky News. "Look at me, my white grandfather comes from Durham in England."

Asked what her message would be for non-indigenous Australians, she said: "You had the opportunity. But the hope and goodwill ship has sailed and you may never pass this again."

Opposition leader Peter Dutton dismissed the proposal as "another layer of democracy", which would not provide practical outcomes.

Referendums are difficult to pass in Australia, with only eight of 44 succeeding since the nation's founding in 1901.

A polarising 'No' campaign, led by Australia's opposition Liberal Party, was also supported by a small number of indigenous leaders, who argued the proposal either didn't go far enough or would fail to change the grim reality for remote Aboriginal communities.

The plans were proposed in the Uluru Statement from the Heart, a 2017 document drafted by Indigenous leaders that set out a roadmap for reconciliation.

But human rights advocates now fear the 'No' camp's win could set back reconciliation efforts by years.

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Australia's Indigenous citizens have inhabited the land for about 60,000 years, but are not mentioned in the constitution and are, by most socio-economic measures, the most disadvantaged people in the country.

Accounting for only 3.8% of the population, indigenous Australians die up to eight years younger than non-indigenous citizens and are 12 times more likely to be in prison, while Aboriginal women are eight times more likely to be murdered than non-indigenous women.

The 'Yes' campaign said it would have given the community agency to advise the government on areas like indigenous health, education and social services.

Almost 18 million people were enrolled to vote in the referendum, which is the country's first since 1999.

About 6 million people cast ballots in early voting over the past three weeks, with roughly 2 million postal votes to be counted for up to nearly two weeks after the polls close on Saturday.

No constitutional amendment has been made since 1977.