Policy statement for northern Australia

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To enhance the prosperity and wellbeing of northern communities, the Australian Government is working to support development in Australia’s north.

The 2015 Our North, Our Future: White Paper on Developing Northern Australia set out a 20-year vision for northern Australia. The White Paper articulated a vision to unlock the vast potential of the north by addressing impediments to development, capitalising on its unique strengths and facilitating the right business environment to enable growth, in partnership with traditional owners. Significant investment and progress in this long-term agenda have been achieved through implementing the White Paper’s recommendations and through subsequent Australian Government budgets.

Northern Australia encompasses 53%¹ of Australia’s landmass but is home to only 5.1% of Australia’s population. Almost 1.4 million people² live in the north, of which 17.4%³ are First Nations people. Its economy supported over 100,000 businesses⁴ and employed over 629,000 people⁵.

A refreshed agenda is needed.

This Action Plan sets out a refreshed policy agenda for Australia’s north. The vision has largely stayed the same but the importance of achieving this vision for Australia’s broader prosperity has become so much clearer.

Australia’s success relies on the north being successful.

A strong and prosperous north is key to the successful delivery of the Australian Government’s national policy agendas: supporting the nation’s transition to a net zero economy; encouraging investment in priority sectors to support Australia’s national interest through the Government’s Future Made in Australia agenda; the national target to protect and conserve 30% of Australia’s landmass and 30% of Australia’s marine areas by 2030; implementation of the Government’s National Defence Strategy 2024; and the National Agreement on Closing the Gap. Given the importance of economic development in northern Australia to achieving these national priorities, Australia cannot be successful without the north also being successful.

While challenges and impediments remain, much has changed since 2015 and new policy priorities are neede.

The policy priorities identified in the 2015 White Paper, including those focused on infrastructure and workforce development, remain important today. The north is experiencing certain challenges, such as the cost of living crisis, housing availability and affordability, skilled workforce shortages and the increasing impacts of climate change. These challenges are exacerbated by a small, sparse and transient population, long distances, harsh climatic conditions and historical underinvestment in infrastructure and services.
Thin markets, absence of scale, and underdeveloped and vulnerable supply chains all contribute to a higher cost of living and a riskier business environment.

But the world has changed markedly since 2015, when the White Paper was released. New issues and priorities have emerged. Therefore, a refreshed northern agenda is needed - one that reflects the full range of the Australian Government’s policy priorities. The new agenda must support the economic and development opportunities for the north, including for First Nations people, and take account of contemporary issues and the views of northern stakeholders.

The global impacts of the COVID-19 pandemic and an increase in the occurrence and severity of natural hazards have significantly impacted the northern economy. The net zero transition and geostrategic competition are transforming the global economy. The National Defence Strategy 2024 identified a new strategic reality for Australia, with Australia’s north pivotal to Australia’s defence objectives.

The National Agreement on Closing the Gap is a key priority for the Government, and this commitment is particularly important in Australia’s north. For decades, governments have strived to close the health, education and employment gaps between First Nations and non-First Nations people but have made only modest gains. Systemic barriers and the impacts of historical policy decisions have continued to stifle First Nations economic engagement such as employment, business ownership, access to business finance, access to Country for commercial opportunities and a broader lack of remote infrastructure and services. The National Agreement on Closing the Gap commitments, including embedding all 4 priority reforms, are reflected throughout this Action Plan.

In light of these changes, our specific policy priorities to achieve the vision also need to be updated. We need to ensure our northern communities are more resilient and better able to benefit from development opportunities. Some of the larger regional cities of the north have transformed over the last 10 years into vibrant economies and communities, but many northern regional and remote communities continue to struggle with significant barriers to prosperity.

The refreshed agenda demonstrates the Government’s ongoing commitment to northern Australia.

The Northern Australia Action Plan reaffirms the Australian Government’s commitment to the north and sets the strategic direction for the next stage of investment and growth in the region. The Action Plan recognises the potential of northern Australia to build on its position as an energy powerhouse and to become an attractive environment for investment, growth and liveability. The Action Plan focuses on 6 policy priority areas designed to enhance the prosperity and wellbeing of northern communities.

Central to all 6 policy priority areas is the commitment to advance First Nations outcomes, which is vital to the success of the northern Australia agenda. Specific action to achieve this goal is embedded across each of the following 6 policy priority areas.

1. Activating the northern economy

Vital to the Government’s agenda is a strong northern economy. The Government is supporting growth in the north’s existing industries and developing new opportunities through its Future Made in Australia agenda, sustainable development of critical minerals, strategic materials and renewable energy, and the transition to a net zero economy. Critical to activating the northern economy is ensuring economic opportunities for First Nations people and addressing the high costs of doing business in the north.

2. Infrastructure to unlock growth

While improving in some areas, poor and unreliable infrastructure impacts the north’s ability to conduct business and access essential education, health and emergency response services. The Government understands the need for reliable and affordable transport, communications links and community infrastructure to improve liveability and unlock economic opportunities in the north. The Government is investing in transport infrastructure, improved digital connectivity and water infrastructure to support business and economic growth in the north and improve the sustainability and liveability of communities.

3. A safe and secure north

The National Defence Strategy 2024 highlights the strategic importance of the north to national security and the need for a re-posturing of Defence personnel and equipment across northern Australia. Defence investments, infrastructure and workforce in the north can deliver significant benefits to the local economies. Equally, a whole of government approach is needed to meet the strategic challenges Australia faces.

By working together, government and stakeholders can maximise local benefits, support the sustainable growth and integration of the defence community and industry in the north, and contribute to national resilience and national security. The Government’s continued investment in the management of biosecurity threats is also essential to protecting industries and the environment.

4. Growing the northern Australia workforce

Across the north, there is a high demand for skilled labour, with intense competition across multiple industries and high turnover rates. Businesses face higher costs of labour and a shortage of skilled and semi-skilled personnel. The Government is working to develop a sustainable northern workforce by building the capability of the existing workforce and local communities, attracting and retaining skilled workers, accommodating the needs of fly-in-fly-out workforces, reviewing migration policy settings and lifting the participation of First Nations people in the northern economy.

5. Liveable, healthy and resilient communities

The Government is working to improve the liveability of northern communities by investing in community infrastructure and services to build healthy and resilient communities and to encourage more people to live and work in the north. This includes work with industry, community representatives, state and territory governments and local governments to assist communities that are experiencing significant economic transition.

Northern Australia also faces particular challenges with more frequent and intense natural hazards. The Government is working with communities to help them understand, prepare for and respond to the impact of climate change, extreme weather events and disasters.

6. Protecting the north’s environment and cultural heritage

The north’s natural and cultural wonders are recognised across the world. The Government is focused on working with stakeholders to protect, conserve and promote the north’s unique land and waterscapes, biodiversity and significant cultural heritage.

These policy priority areas are explored throughout this Action Plan and will be progressed through government action over the next 5 years.