Budget fails to help Northern Territory Close the Gap

The Northern Territory has accused the Turnbull government of turning its back on the Top End with its budget.

Two boys, aged one and two, have shown signs of neglect while in out-of-home care. Source: AAP

The coalition's fiscal papers revealed no significant new spending or projects for the NT and many say it’s not helping Close the Gap for Indigenous people. 

Luke Gosling joined fellow federal Labor MP Warren Snowdon and Senator Malarndirri McCarthy to criticise a $16 million decrease in National Partnership for Remote Housing funding to the NT.

"There are no real funding commitments in this budget to close the Gap of Indigenous disadvantage. This is a disgrace," they said.

NT Chief Minister Michael Gunner says his Labor government will have to do the heavy lifting to get its struggling economy back on track.

Northern Territory Chief Minister Michael Gunner Source: AAP/Lucy Hughes Jones

Mr Gunner said federal Treasurer Scott Morrison's second budget was a test of Canberra's commitment to developing the north through defence infrastructure.

"It failed that test," he said.

"There's little in the budget except a small national increase in health and education funding - but nothing to demonstrate a genuine commitment to the Territory's future."

Mr Gunner invited Prime Minister Malcolm Turnbull and the treasurer to the Territory to see firsthand the level of disadvantage, the limitations to growing government revenue and the challenges of delivering services to remote areas.

He advised them that it costs ‘more to run a health clinic in Yuendumu than in Geelong’.

Health workers were withdrawn from Yuendumu in the days leading up to the fatal shooting. Source: Supplied

The NT will receive a cut of the $55.7 million the commonwealth has committed over five years, to help improve the job prospects for Indigenous Australians across the country.

Likewise, the commonwealth is providing $3.6 billion over four years from 2017/18 to Indigenous Australians' Health program to improve effective health care services in areas of need.

NT Council of Government School Organisations says Indigenous school funding will lose $21 million over the next four years. Making the NT the only state ‘transitioning down’ in funding.

Indigenous Affairs Minister Nigel Scullion says Canberra has pledged $4.2 billion for the Territory next financial year and demanded the NT government encourage private investment by lifting a ban on fracking.