Central Australia

Central Australia is the largest region in the Territory, covering 42% of the land mass. Alice Springs is the regional centre with about 30,900 residents, serving a total regional population of 43,400, around 16% of the Territory population.

Central Australia is a highly dispersed region comprising 27 remote communities, numerous outstations and pastoral stations, and governed by three local councils (Alice Springs Town Council, MacDonnell Regional Council and Central Desert Regional Council), with Alice Springs as the central service hub.

The region has a diverse economy driven by tourism, mining and energy, pastoralism and human services, underpinned by strong regional connectivity through the Stuart Highway, Adelaide to Darwin railway and gas pipeline, and high‑quality digital networks.

Economic development

A key focus for 2026 will be on regional economic development to drive private sector investment and align government and stakeholder efforts to unlock the region’s economic potential.

There is over $300 million of new private and public sector projects in Alice Springs and over $5 billion of regional resources, tourism and agricultural projects in various stages of development.

The $22.8 million Uluru‑Kata Tjuta Signature Walk launched in April 2026 was supported by a $10 million concessional loan through the Territory Growth Initiative, providing a major boost to the Central Australia tourism sector and regional economy. Work is also progressing on the Territory Government funded $5.5 million Watarrka National Park walking trail.

Correctional facilities

Capacity across the corrections and youth justice systems is being expanded, with 95 additional beds at the Alice Springs Women’s Correctional Centre and 24 youth justice beds at the Paperbark facility scheduled for mid‑2026. The scope of these projects was increased to meet rising demand, resulting in an expansion of 55 additional beds. In addition, a further $12 million is provided for critical infrastructure upgrades at the Alice Springs Correctional Centre.

St Mary’s development

The 2026 Budget continues to develop the St Mary’s site with an additional $12 million in 2026-27 to support an application to the Commonwealth’s Housing Australia Future Fund (HAFF).

Initial works on enabling infrastructure such as power, water, sewerage and roads, site preparation and demolition are currently underway.

Remediation works are expected to commence in 2026, with completion of enabling infrastructure targeted for mid‑2027.

A further $0.8 million is provided to support a HAFF application for the Musgrave Street project.

Flood recovery

The Territory Government introduced the $100 million Flood Recovery Fund to rebuild critical infrastructure and support Territory communities. An immediate $12.5 million commitment to boost the first phase of the broader Flood Recovery Fund includes $4.9 million for immediate flood mitigation works in Alice Springs.

Improving Alice Springs flood mitigation infrastructure will deliver long-term value by reducing damage to critical infrastructure lowering future repair and emergency response spending and protecting essential services during extreme weather events in Central Australia. In turn, this improves Territory-wide resilience and maintains year round access for communities and industry.

A $2.5 million investment is allocated within the funding boost to strengthen Territory-wide early warning IT solutions.

Roads update

The 2026 Budget includes $420.9 million for road upgrades in Central Australia, to improve connectivity, flood immunity, safety and access, as well as economic development for the region. Key upgrades include:

• $278.4 million for upgrades to the Tanami Road corridor
• $133.3 million to continue works on theOutback Way to upgrade various road sections of the Plenty Highway and Tjukaruru Road
• $8.2 million for upgrades to the Schwarz Crescent and Stuart Highway intersection.

Land release

The Territory Government continues to support the growth and economic development of the Alice Springs region through a program of land release including:

• $11 million for headworks infrastructure and subdivision works to support 36 lots at Kilgariff Estate
• $3 million over two years to progress planning works for industrial land and enabling infrastructure for the next release of residential land in Kilgariff.

The extension of the HomeGrown Territory grants will also continue to unlock new development opportunities to drive momentum in Alice Springs.

Alice Springs infrastructure priorities

The 2026 Budget continues to progress the Territory Government’s $100 million investment to deliver key Alice Springs infrastructure priorities.

The 2026 Budget includes $66 million on the capital works program to deliver projects that prioritise community pride and social connection through improved sporting infrastructure and enhanced

community liveability. Key projects include:

• development of the Gillen Oval multi-sports precinct as a youth sporting and recreation hub
• establishment of a new multicultural centre and related infrastructure to celebrate the diverse backgrounds in Alice Springs
• intersection upgrades at Schwarz Crescent.

This is in addition to grants and works that have already been progressed for the new Alice Springs Town Council library, skate park, Anzac Oval reinstatement and Teague Park upgrades.

Printable fact sheet

Get a printable copy of the Central Australia region fact sheet PDF (1.3 MB).