Northern Territory Budget 2025-26: Quick Guide for the Built Environment Industry
On 13th May 2025, the Hon William Yan handed down the first budget of the Finocchiaro Country Liberal Government, focusing on “Action, Certainty and Security”. The Northern Territory's 2025-26 Budget delivers a comprehensive $4.34 billion infrastructure investment focused on connecting communities, enabling development, and supporting economic growth across the Territory. With substantial commitments to transport connectivity, community safety, remote housing delivery, supporting improved health outcomes, strengthening tourism assets, and strategic economic infrastructure, this budget presents significant opportunities for built environment professionals across various sectors.
The following summary captures the key budget initiatives most relevant to built environment professionals, providing insights to inform your business development approach for the coming year.
Transport Infrastructure & Economic Projects
The Northern Territory continues its major commitment to transport connectivity with a $2 billion investment program representing nearly half of the total infrastructure budget. This substantial allocation reflects the Territory's unique geography and the critical importance of road networks for connecting remote communities and supporting economic development.
Key investments include:
$563 million for the delivery of the Darwin ship lift and marine facilities project, to establish Darwin as a key maritime maintenance centre in northern Australia and a thriving maritime services industry hub
$289 million for the Tanami Road sealing program to deliver 150 kilometres of sealed road to improve connectivity between Western Australia and the Northern Territory
$223.1 million allocated to the Northern Territory national network highway upgrades to ensure continued maintenance and improvement of the Territory's strategic road corridors
$205.4 million commitment to the Central Arnhem Road upgrade program to connect Nhulunbuy to the Stuart Highway, and provide improved access for remote communities
$181.3 million dedicated to Northern Territory gas industry roads to support infrastructure development in resource regions
$161 million for the Outback Way Corridor to upgrade sections of Plenty Highway and Tjukaruru Road to enhance east-west connectivity
$122.6 million allocated to the Strategic Roads Package to enable the upgrade and sealing of remote and regional roads across the Territory
$117.4 million for the Buntine Highway upgrade program and development of rest areas
$89.7 million committed to Port Keats Road for upgrades between Wadeye and Palumpa
$80 million for Arnhem Highway duplication between Stuart Highway and Kostka Road
$66.2 million for road upgrades within Kakadu National Park to support tourism growth
$57.5 million for priority projects within the Tennant Creek to Townsville corridor, including sealing and strengthening works
$42.6 million to upgrade roads connecting Tiwi Islands communities
$41.6 million for priority projects within the Newman to Katherine corridor
$30 million for upgrades to remote community access roads
$28.3 million for upgrades to Sandover Highway, including widening and sealing 20 kms of strategic route
$23 million for Roystonea Avenue duplication from Terry Drive to Lambrick Avenue
$18.4 million committed to fund the completion of the new $84 million Mandorah Marine Facility, including new breakwaters, disability access improvements, and car park upgrades (project under construction - due for completion by July 2025)
Housing and Community Amenities
The Territory's housing investment continues to address the critical need for quality accommodation in remote communities while supporting urban growth, with $833.2 million committed to the development of new and upgraded remote and urban housing, infrastructure to support land release, and improving amenity for communities. This includes a commitment of $114.2 million for repairs and maintenance to urban and remote housing.
Remote Housing Program
The budget demonstrates a strong commitment to boosting remote housing across the Territory, with a total investment of $615.4 million representing a shared commitment by the Territory and Commonwealth governments across the following key programs:
$302.4 million for the development of new housing and land servicing works under the 10-year Remote Housing Northern Territory agreement (further details beow)
$300.9 million for remote housing investment package works, predominantly allocated to land servicing, with funds also committed to HomeBuild NT to deliver new housing, and Room to Breathe to improve the liveability of existing homes through building additional living spaces
$12.1 million to support ongoing works for new and improved housing through other national partnership agreements
The $4 billion Remote Housing Northern Territory agreement is a jointly funded Commonwealth and Territory 10-year commitment which commenced in 2024 to deliver up to 270 homes each year in remote communities across the Territory, totalling 2,700 homes over the life of the arrangement. The agreement operates under a formal partnership with the Aboriginal community sector, ensuring community-led approaches to housing delivery. Under this agreement, the Territory expects to receive $922 million over the budget cycle to 2028-29.
Urban Development and Land Release
The budget also shows a continued investment in infrastructure works to support future developments, including:
$49.6 million allocated to Holtze headworks infrastructure for Greater Darwin's next urban suburb, presenting opportunities for residential development specialists
$14 million committed for the development of the historic St Mary's Hostel and Chapel site in Alice Springs, including enabling infrastructure, site preparation, demolition and remediation works to support the development of approximately 120 social housing dwellings and other community spaces
$11 million each for Kilgariff land development and community facilities, and Farrar West headworks infrastructure
$3.95 million for regional land development headworks infrastructure and subdivision designs
$1.2 million for Berrimah North headworks infrastructure
New subdivisions planned for Minyerri, Galiwinku, and Maningrida (Stage 3) in 2025-26
Health
While the budget reflects a strong investment in health to support the delivery of safe and high quality health services for Territorians, less than 7% of this is committed to health infrastructure projects. A total of $158.7 million is allocated to the construction of new and the upgrade of existing hospital and health facilities, with a key focus on mental health facilities and regional health service expansion to meet growing demand across the Territory.
Key investments include:
$49.3 million for Royal Darwin Hospital Mental Health Facility, delivering a new inpatient unit and stabilisation assessment and referral area facility
$35.1 million for the upgrade of central sterilisation service departments across Territory hospitals
$34.7 million for repairs and maintenance to hospitals and health facilities
$19.8 million for a new Borroloola Health Centre featuring clinical spaces, pharmacy, emergency resuscitation equipment, consulting spaces, and morgue facilities
$17.6 million for the development of a new modular Multipurpose Facility at Royal Darwin Hospital
$3.15 million for a new warehouse and road upgrades for the National Critical Care and Trauma Response Centre located at Darwin International Airport
Education & Youth
While education infrastructure represents a smaller portion of the Territory's capital program, the targeted $32.2 million investment focuses on completing key projects and addressing specific capacity pressures, particularly in the growing Palmerston region, and essential facility upgrades across remote and urban schools.
Key investments include:
$34.4 million for repairs and maintenance to schools and education facilities
$3.8 million to deliver new preschool facilities at Parap Primary School
$3.1 million to upgrade Yuendumu School
$1.7 million to support planning for secondary and special education growth in Palmerston
$1.6 million to deliver administration block upgrades at Leanyer Primary School
$1.2 million to complete Katherine High School's new STEAM centre featuring classrooms, art and music studios, and performance space
$1 million to deliver a new Palmerston Special Education centre for middle and senior students
Further budget allocations targeting youth outcomes include $11.6 million for youth diversion and homelessness programs, with $4.6 million to enable the delivery of a new northern suburbs youth hub at Leanyer Recreation Park.
Cultural, Tourism and Recreation Infrastructure
A significant $247.3 million investment in cultural, tourism and recreation facilities demonstrates the Territory's commitment to community amenity and economic diversification through tourism and cultural development.
Key investments include:
$123.5 million committed to deliver the Aboriginal and Torres Strait Islander Art Gallery in Alice Springs, representing a major cultural infrastructure investment
$14.8 million for the construction Alice Springs Town Council’s new Library facility, with the aim of expanding public services and enriching community spaces
$14.1 million for Alice Springs Multi-Sports Precinct facility in Gillen
$10.2 million for a new Visitor Park in Tennant Creek to provide a range of safe accommodation options for transitional and seasonal visitors
$8.9 million for the establishment of the new Alice Springs Multicultural Centre
$5.7 million for Skate and Play Precinct at Newland Park, Alice Springs
$5.5 million for new multi-day walking track at Watarrka National Park
$4.8 million towards the establishment of a new Tourism Central Australia headquarters and Visitor Information Centre
$3.3 million for Hidden Valley Motor Sports Complex track and service modifications
$1.7 million for new walking and bike trails at Nitmiluk National Park
$1.5 million for the development of the new Katherine Multipurpose Multicultural Facility to host cultural events and community activities and promote greater social inclusion and participation
Public Safety and Emergency Services
Public safety infrastructure investment totals $270.9 million, addressing critical police and corrections facility needs across the Territory's vast geography.
Key investments include:
$143.5 million allocated to the Remote Police Infrastructure and Housing Upgrade program, addressing housing and facility needs across remote locations
$69.6 million for implementation of the Corrections Infrastructure Masterplan
$35.7 million for the construction of the Maningrida Police Complex project, which will deliver a new multipurpose facility with capacity for 14 officers, holding cells, housing, and court facilities
$13.9 million for repairs and maintenance to police, fire and emergency services facilities
$6.6 million to deliver upgrades to the Joint Emergency Services Communications Centre (JESCS)
$2 million for the establishment of a dedicated Alice Springs Police Communications Centre for greater efficiency, enhanced response capabilities and integration with the JESCC
Sources: Northern Territory 2025-26 Budget Regional Overview, Northern Territory 2025-26 Budget - Budget Paper No.4 The Infrastructure Program