Message from the Treasurer

The 2026 Budget is the Finocchiaro CLP Government’s second budget and it is built on restoring stability today, driving growth tomorrow, and delivering opportunity for every Territorian long into the future.

The 2026 Budget was developed in challenging circumstances, with natural disasters, national economic headwinds, and international pressures combining to impact communities across the Territory.

Despite these events, this Budget includes an operating surplus in most years, lower fiscal balance deficits, and reduced debt growth. This is a remarkable turnaround from the deep deficits and runaway debt we inherited from Labor.

The improvements in the general government operating balance are particularly important, as the Territory moves away from the unsustainable position of having to borrow to pay for operating costs such as wages. This means that under the CLP, the Territory will have money and resources available when they’re needed.

The 2026 Budget allocates over $130 million on the capital works program for flood recovery and resilience initiatives, which includes a $100 million Flood Recovery Fund following unprecedented flooding across the Territory and a $30.5 million Roads Repair Package, along with other significant operational commitments for flood and disaster recovery in 2025-26 and 2026-27. The economic impact of these natural disasters is yet to be fully quantified but is expected to be substantial and cannot be measured in economic terms alone.

Community safety is, and will remain, the Finocchiaro CLP Government’s number one priority. That is why the 2026 Budget delivers a record $1.7 billion investment in law and order. This investment will ensure more frontline police, continued upgrades to the corrections system and greater support for the courts to tackle the root causes of crime. As part of this commitment, the 2026 Budget includes a further $250 million for the Corrections Infrastructure Masterplan, including new prisoner work camps in Darwin and Katherine and utilties upgrades at Alice Springs Correctional Centre.

The Finocchiaro CLP Government is delivering on our Rebuilding the Economy Strategy and remains committed to driving growth, certainty and security for Territorians. We continue to prioritise population growth and will capitalise on the Territory’s natural strengths in energy, defence, agriculture, mining and tourism, supported by competitive tax and regulatory settings and practical cost of living relief. We are unlocking residential land and development opportunities across the Territory and have extended the HomeGrown Territory and FreshStart new home grants to 30 September 2027 to support increased home ownership. We have also announced the first Territory Development Area under the Territory Coordinator Act 2025 for the Northern Marine Complex, the Territory’s most significant economic project.

The 2026 Budget provides a record $2.62 billion to support our vital health services. The CLP were able to secure a landmark one-off $1 billion funding boost from the Commonwealth Government for our hospitals and will continue to advocate strongly for the Commonwealth to appropriately fund aeromedical retrieval services in the Territory. The 2026 Budget is investing in the Territory’s future through a record $1.73 billion education budget, including $110 million to construct a new secondary special education school in Palmerston.

After years of going backwards, the Territory is moving forward again…steadily, responsibly and with purpose.

The Hon. Bill Yan MLA
Treasurer