Police, on foot and on riot horses, followed the marchers all the way.
Jason Maxwell, 31, of South East Dandenong Ranges, was among the protesters.
"I disagree, strongly disagree, in selling out on the aboriginal communities just for money," Maxwell told AAP.
He said the WA and federal Governments should recognise the importance of the link between indigenous people and their lands, and it was wrong to describe this as a lifestyle choice.
"It is the worst thing that a modern government could ever say," Maxwell said.
"It's a political tool to separate us, and I think it is wrong."
The protesters did not enjoy universal support, with a heckler heard to shout "move over to WA".
Prime Minister Tony Abbott last month referred to Aborigines' decision to live in remote areas as a "lifestyle choice".
He shrugged off the decision to close 150 WA remote Indigenous communities, saying the taxpayer should not have to fund people's "lifestyle choices".
Abbott told ABC Radio last month that WA Premier Colin Barnett was right to shut down the communities if the cost of providing services outweighed the benefits.
"What we can't do is endlessly subsidise lifestyle choices if those lifestyle choices are not conducive to the kind of full participation in Australian society that everyone should have."
Indigenous leaders slammed Abbott's comments. Lawyer and academic Noel Pearson told the ABC that remote indigenous communities deserved an "extensive" explanation and not "off-the-cuff" comments.
"I think it's a very disappointing and hopeless statement by the Prime Minister, quite frankly."
- AAP
