Government and community services
Outlook
The government and community services sector is expected to continue growing in the near term driven by ongoing demand for critical government services.
The government and community services sector grew by 3.4% to $7.5 billion in 2023-24 and accounted for about 23.9% of the Territory’s GSP. The government and community services sector as a share of the economy has historically been higher than the national share, reflecting the complexity of delivering services in the Territory.
This sector is the largest employer in the Territory, representing around 43.7% of employment in 2023-24. This comprises 17.6% in health care and social assistance, 15.6% in public administration and safety, and 10.5% in education and training. Employment growth post 2019‑20 has been largely led by growth in health care and social assistance, and education and training (Chart 1).
Chart 1: Territory change in year average employment since 2002-03
Source: ABS, Labour Force, Australia, Detailed; Department of Treasury and Finance
The government and community services sector is expected to continue growing in the near term with significant new policy commitments over the budget cycle to support mental health and hospital services, reduce crime through early intervention programs and investment in police services. The government has also announced new investment to address demand on the justice and correction systems.
Key program funding and investment includes:
- $126 million in 2025-26 and $176 million per year ongoing from 2026-27 in additional funding to address corrections system pressures, increase electronic monitoring capacity and support prison healthcare services
- $100 million per year ongoing from 2025-26 to address pressures in the health system and deliver safe and high quality health services to meet current and future needs of Territorians
- $95 million in 2025-26 for additional police resourcing through the Territory police funding package
- $78 million over four years from 2024-25 and $20.9 million per annum ongoing from 2028-29 to address and reduce justice system demand.
Significant education reforms under the Better and Fairer Schools Agreement 2025–2034 over the next decade will also support the government and community services sector with total funding under the agreement of $1.1 billion.
Defence activity also contributes to the government and community services sector, with ongoing defence activity expected in the Territory as strategic competition grows in the Indo‑Pacific region (refer to the Defence section for further information).
For the latest data on the Territory’s government and community services sector, refer to the Territory Economy website.