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Middle Arm industrial precinct, remote homelands and Aboriginal art gallery funding confirmed for NT in federal budget

Funding for a billion-dollar industrial hub south of Darwin and a major Aboriginal art gallery in Alice Springs are among the big-ticket items confirmed for the Northern Territory in Tuesday's federal budget.

The budget also includes hundreds of millions of dollars towards the sealing of outback roads and the urgent maintenance of Aboriginal homelands across the Northern Territory.

The most significant funding -- totalling $1.5 billion in equity over seven years -- will be channelled towards Darwin Harbour's Middle Arm, where the NT government has proposed an industrial precinct featuring petrochemicals, minerals processing and renewables-based hydrogen.

The project, which is expected to include a jetty and other "common user marine infrastructure", was initially backed by the former Morrison government, which allocated the same funding over 10 years in its budget earlier this year.

Labor has described the precinct as a "a pathway to a decarbonised economy", but environmentalists have been highly critical of its expected use of fracked gas.

Last week, the Greens threatened to withhold Senate support if the project was in the budget

The budget includes $440 million in planned equity for regional logistics hubs in Katherine, Tennant Creek and Alice Springs, as previously flagged by the Morrison government.

Extra money has also been set aside to seal remote roads, with an additional $350 million going towards the Tanami and Central Arnhem highways.

As pledged during its election campaign, Labor has allocated significant funding towards urgent housing and essential infrastructure in hundreds of homelands across the Northern Territory. 

However, rather than being an "immediate boost of $100 million", as flagged ahead of the election, the money will be split over two years, with $25 million for this financial year, and the remainder for 2023-24.

The federal government has also extended its remote housing agreement with the NT government for another year, committing a further $110 million.

As promised ahead of the election, the budget includes $80 million to support a National Aboriginal Art Gallery in Alice Springs, however there is no time frame on when the funding will be used.

"This budget is delivering on promises that will provide long-awaited roads and infrastructure that will benefit the lives of so many people for years to come," Labor Member for Lingiari, Marion Scrymgour said.

In Katherine, $10 million has been allocated to upgrade the town's swimming pool.

In Darwin, $3.6 million will be spent over two years to establish a support facility for homeless veterans, known as the Scott Palmer Centre.

Named in honour of the Australian commando who was killed while on duty in Afghanistan in 2010, the government said the facility will help former ADF members secure appropriate and permanent housing solutions and employment opportunities, as well as access to other support programs.

CareFlight will also receive $10.1m to increase its capacity to deliver aeromedical services in the Northern Territory.

Other funding for the NT includes:

  • $29 million for 831 Commonwealth-supported places for students at university
  • $28 million to maintain the Centre for National Resilience at Howard Springs in return for "priority access" if quarantine services are required this year
  • $2.2 million for First Nations participation in AFL training and competitions
  • $1 million over two years for new ablution blocks at four town camps at Borroloola

The NT government welcomed the budget announcements, saying they would strengthen and diversify the territory's economy.

"We will continue to work with the federal government to make sure we continue to develop our region, improve our cost of living, and improve our social inequalities," Chief Minister Natasha Fyles said.

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