Government and community services

Outlook

The government and community services sector is expected to grow in the near term, supported by sustained demand for essential government services.

The government and community services sector grew by 1.1% to $8.1 billion in 2024-25 and accounted for about 24.7% of the Territory’s GSP (Chart 1). Its share of the economy has been stable over time and is consistently higher than the national share, reflecting the complexity and cost of delivering services in the Territory.

This sector is also the Territory’s largest employer, representing 46.1% of employment in 2024-25, around 66,300 people. This includes 20.4% employed in health care and social assistance, 15.4% in public administration and safety, and 10.4% in education and training. The government and community services workforce has been a large driver of employment growth in the Territory in recent years (Chart 2). This has been supported by national and NT policy commitments to expand health and disability services, mental health and hospital services, reduce crime through early intervention programs and increase investment in police services. Additional funding has also been provided to address rising demand across the justice and corrections systems.

Chart 1: Territory gross value added

Source: ABS, Australian National Accounts: StateAccounts; Department of Treasury and Finance

Chart 2: Territory change in year-average employment

Source: ABS, Labour Force, Australia, Detailed; Department of Treasury and Finance

Key program funding and investment includes:

• $130 million in 2025-26 to address health system pressures
• $48 million over 4 years from 2025-26 and $15.8 million per annum ongoing to establish and support the new police public safety officer workforce
• $18.3 million per annum ongoing from 2026-27 to open and operate the new 32-bed multi-purpose modular ward at Royal Darwin Hospital
• $10 million per annum ongoing from 2026-27 to expand contracted road ambulance services
• $10 million per annum ongoing from 2026-27 for the Top End aeromedical retrieval service
• $3.8 million per annum ongoing to fund local court judges and the higher courts.

Flooding in early 2026 has placed additional pressure on government and community services. In response, the Territory Government announced a $100 million Flood Recovery Fund to rebuild critical infrastructure, including roads, bridges and flood mitigation works.

Significant education reforms under the Better and Fairer Schools Agreement 2025–2034 will support additional activity in the government and community services sector with $3.5 billion over the budget cycle to 2029-30. The agreement focuses on 3 national priorities: equity and excellence; wellbeing for learning and engagement; and a strong and sustainable workforce.

The government has announced an additional $1 billion for Territory hospitals under the National Health Reform Agreement 2026–2030. This investment is expected to drive a significant shift in the delivery of health services, with a focus on alleviating pressure, strengthening the workforce and addressing high levels of demand.

Commonwealth-funded defence activity also contributes to the government and community services sector, with ongoing defence activity expected in the Territory as geopolitical positioning in the Indo-Pacific region intensifies. Continued investment in defence infrastructure, workforce, and support services will help sustain demand across the sector and provide a stable source of economic activity (refer to the Defence section for further information).

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