Government and community services

Outlook

The government and community services sector’s output is expected to increase in the near term due to increased demand for government services and the response to extreme weather events.

In 2021-22, the government and community services sector accounted for 22.8% of the Territory’s GSP, which is higher than the national contribution of 17.3%. The sector is the largest employer in the Territory, accounting for 44.1% of employment in 2021-22, of which 17.2% is in public administration and safety, 18.2% in health care and social assistance and 8.6% in education and training.

Chart 1: Territory change in employment

  Chart 1: Territory change in employment

Source: ABS, Labour Force, Australia, Detailed, Cat. No. 6291.0.55.001; Department of Treasury and Finance

From 2002 to 2022, growth in employment in the government and community services sector has accounted for 43.5% of the growth in total employment (Chart 1). In recent years, employment growth in the sector has been driven by the public health response to COVID-19.

Growth in the sector is expected to continue in 2022-23 due to growth in demand for government services. This includes programs to support hospitals; correctional services; youth justice; courts; domestic family and sexual violence initiatives and antisocial behaviour activities.

In January 2023, ex-Tropical Cyclone Ellie resulted in severe weather and flooding significantly impacting communities in the Top End region of the Territory. The Commonwealth and the Territory Government have provided financial assistance to support affected residents in meeting their immediate needs and facilitate return to their homes. Additionally, funding will be provided to support local councils in covering the expenses of cleaning up, repairing flood-damaged housing and infrastructure (including roads and utilities) and undertaking counter-disaster operations.

In response to social issues in Alice Springs, in early 2023 the Commonwealth and Territory government announced a funding package for Central Australia, aiming to enhance community safety, combat alcohol-related harm and create more opportunities for young people. The plan includes $48 million in community safety funding for:

  • extra high visibility police and law enforcement operations including targeting grog running, increasing liquor licensing compliance inspectors and boosting security guards in public places
  • improving closed-circuit television, lighting and safety measures throughout Alice Springs
  • additional emergency accommodation and safe spaces to give young people a place to go to at night and boost effectiveness of the night patrol program
  • the Tangentyere Women’s Family Safety Group to boost domestic violence services
  • funding to extend safety and community services, which are currently scheduled to end in June 2023 and provide certainty to providers and their employees to ensure this work continues.

Additionally, $250 million will be invested in:

  • improved community safety and cohesion, through more youth engagement and diversion programs
  • job creation, including changes to the Community Development Program
  • improving health services in surrounding communities
  • preventing and addressing the issues caused by foetal alcohol spectrum disorders
  • families, including by better supporting elders and parents, and boosting domestic violence services
  • on country learning, by improving school attendance and completion through caring for culture and country.

The Territory Government continues to provide targeted program funding and infrastructure investment for areas of strategic need and in line with population growth. This includes several long-term projects and funding initiatives that will support output in the government and community services sector over the outlook period. Key program funding and investments include:

  • $135.3 million to upgrade the Royal Darwin Hospital (including the new mental health unit) and the Alice Springs Hospital
  • $36.8 million to upgrade the central services sterilisation department across the Territory
  • $29.4 million to upgrade Territory schools and other educational facilities
  • $46.6 million to upgrade police complexes across the Territory
  • $10 million in additional funding to support implementation of the second round of reforms under the Domestic, Family and Sexual Violence Action Plan
  • $19.9 million to address the Department of Attorney-General and Justice’s demand pressures and justice reform.

In March 2023, the Commonwealth granted the Territory’s request for 60 aged care bed licences, and expressions of interest have opened for aged care providers to construct, own, operate, or collaborate in a new aged care facility.

The 2021-22 Commonwealth Budget allocated $396.9 million over 5 years for capital investment to assist aged care providers to enhance their facilities and develop new services.

As part of the 2022-23 Budget, the Commonwealth also announced funding and co-contributions to support program delivery in the Territory including:

  • a 2-year extension to the Northern Territory Remote Aboriginal Investment until 2023-24 with an additional $173.2 million to fund programs to improve outcomes for remote Aboriginal people in health, schooling, community safety and justice; tackling alcohol abuse; child, youth, family and community wellbeing; housing, municipal and essential services; and remote engagement and coordination
  • $30.7 million from the Commonwealth and $13.3 million from the Territory over 2021-22 to 2025-26 towards the National Mental Health and Suicide Prevention Agreement.

In addition, the Territory Government will continue to improve the quality and quantity of economic and community infrastructure through its long-term urban and regional infrastructure programs, including:

  • the $200 million Darwin City Deal, a 10-year (2018–2028) agreement with the Commonwealth and the City of Darwin
    • $132.3 million for Darwin’s Civic and State Square Revitalisation stage 2, including the Northern Territory Art Gallery, sheltered walkways, central heart shade structure and public art
    • the Darwin Education and Community Precinct, which is expected to be completed by 2024
    • planning for future development of a Larrakia Cultural Centre at Stokes Hill
  • the $84.7 million, 10-year (2019–2029) Barkly Regional Deal to stimulate economic growth to reduce overcrowding and improve child safety through economic and social development, and culture and place-making projects, including:
    • the Barkly Business Hub, and the Barkly Mining and Energy Service Hub, to support regional business creation and growth
    • installing a new weather radar to provide real-time weather information and improve road and air travel safety, due to be completed by mid 2023
    • further investment to construct a boarding facility for secondary school children in Tennant Creek, safe places and accommodation for crisis youth support, a visitor park to increase housing supply and reduce overcrowding, and investment in aged care services, community sports and childcare places.

For the latest data on the Territory’s government and community services sector, refer to the Territory Economy website.