NT Budget

Government and community services

Outlook

The government and community services sector’s output is expected to increase slightly in the year ahead, due to increased Territory Government spending on public infrastructure, social policy initiatives related to reducing crime, and the response to damage caused by extreme weather events. Over the medium term, the sector’s output will increase broadly in-line with population and economic growth, GST revenue, and tied Commonwealth grants.

In 2022-23, the government and community services sector accounted for 22.9% of the Territory’s GSP. This is higher than the national industry share of around 17%, reflecting the complexity of delivering services in regional and remote Australia. The sector is the largest employer in the Territory, accounting for 41.3% of Territory employment in 2022-23, of which 14.2% is public administration and safety, 16.3% is health care and social assistance, and 10.8% is education and training.

Chart 1: Territory change in employment since 2002-03

Chart 1: Territory change in employment 2002-03

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

From 2002-03 to 2022-23, the share of employment for the government and community services sector averaged 37.8%. The sector is expected to grow in 2023-24 due to increased expenditure to strengthen public service delivery, particularly housing services and community safety, and disaster assistance for flood impacted parts of the Territory.

On 18 March 2024, Cyclone Megan, a category 3 system, made landfall on the Gulf of Carpentaria, impacting East Arnhem, West Arnhem and the Roper Gulf districts. The Angurugu, Gunbalanya and Borroloola communities were affected by severe weather and significant flooding. The Commonwealth and Territory governments provided financial assistance to support affected residents through immediate hardship payments and repairs to service and infrastructure.

The Territory Government has committed to additional programs and infrastructure investment for areas of strategic need. 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

Key program funding and investments include:

  • $107.5 million to upgrade the Royal Darwin Hospital and $34.1 million the Alice Springs Hospital
  • $40 million for new health centres and morgues in Borroloola and Gunbalanya
  • $53.9 million to upgrade Territory schools and other educational facilities
  • $445 million over five years with an ongoing $120 million per year for police resourcing and to implement the Northern Territory Police Review outcomes, including full establishment of the Territory Safety Division and an additional 200 police officers
  • $67 million to upgrade police complexes across the Territory
  • $30 million in additional funding to support the continued implementation and expansion of reforms under the Domestic, Family and Sexual Violence Action Plan
  • $140 million with an ongoing $10 million per year to support correctional services demand pressures and facilities
  • $14.16 million to establish and operate residential youth justice camps in Darwin, Katherine, Tennant Creek and Alice Springs.

The Commonwealth and Territory governments have also agreed to several significant initiatives to boost government and community services. In early 2023 the Commonwealth and Territory governments announced a $298 million package for Central Australia, aiming to enhance community safety, combat alcohol-related harm and create more opportunities for young people.

On 13 March 2024, the Commonwealth and Territory governments committed to increase funding for public schools to 100% of the Schooling Resource Standard by 2029. As a result, Territory public schools will achieve full funding two decades earlier than under current settings. The agreement aims to provide additional resources to schools across the Territory, supporting students and improving education outcomes. The Commonwealth will invest at least an additional $737.7 million from 2025 to 2029, while the Territory Government commits to investing at least an additional $350 million over the same period.

Urban and regional infrastructure programs

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 to 2028) agreement with the Commonwealth and the city of Darwin
  • the Darwin Education and Community Precinct, which is expected to be completed in 2024
  • planning for future upgrades to cultural facilities in Alice Springs
  • $30.3 million for upgrades to sporting and event facilities across the Territory
  • $24 million for a cyclone shelter in Maningrida.

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

Industry outlook