This literature review critically analyzes health inequalities within the Australian healthcare system, with a specific focus on disparities affecting the Aboriginal and Torres Strait Islander populations. The review synthesizes findings from a systematic search of peer-reviewed journal articles published within the last ten years, utilizing databases such as CINAHL and PubMed. Key themes explored include the impact of socioeconomic determinants on health outcomes, highlighting increased rates of psychological distress, diabetes, and cancer among indigenous populations. The review also examines the role of cultural competency in nursing practice and its influence on healthcare access, emphasizing the need for culturally sensitive interventions and improved healthcare infrastructure, particularly in rural and remote areas. The findings underscore the significant challenges in achieving health equity and the importance of addressing systemic inequalities to improve health outcomes for all Australians.