From Darwin to the Desert, Can Canberra Deliver Real Cost-of-Living Relief for Territorians?

In the Northern Territory, where the cost of a loaf of bread in a remote community can rival a Darwin dinner, inflation bites harder than a saltwater croc. The Territory’s residents, from suburbanites in Palmerston to Indigenous families in Arnhem Land, face a cost-of-living crisis amplified by geography and neglect. With the 2025 federal election looming, political parties are dangling promises of relief, but their policies must be weighed against reason, evidence, and the Territory’s unique realities. Let’s dissect the offerings probing what’s sound, what’s shaky, and what history tells us about such schemes or scams.

The Coalition and CLP, anchored in a belief that economic growth lifts all boats, propose slashing the fuel excise by 25 cents per litre, saving Territorians roughly $14 per tank. This targets the NT’s reliance on vehicles, where fuel costs in remote areas can hit $3 per litre. They also push tax deductions for small businesses, up to $20,000 for meal expenses, and a permanent $30,000 instant asset write-off. Their logic, to empower businesses in Darwin and Alice Springs to create jobs, easing household budgets. They argue inflation, projected to be among the highest in developed nations in 2025, demands fiscal restraint, so they’d cut 41,000 public service jobs across Australia and scrap Labor’s $10 billion housing fund, claiming it’s delivered no homes, on research its actually reduced them. Past fuel excise cuts, like the 2022 temporary reduction, lowered pump prices briefly but didn’t address structural costs like freight. Critics note that business tax breaks often enrich owners without trickling down, and public sector cuts could gut services in remote NT, where government jobs are economic linchpins.

Federal and Territory Labor lean on direct relief, offering a $150 power bill rebate for households and small businesses, paid in two instalments from July 2025, and a $1,200 tax offset for those earning under $144,000. They tout a two-stage tax cut, $5 weekly from 2025, doubling in 2027, and cheaper medicines, dropping PBS prices to $25, by increasing the taxpayers subsidise to foreign pharma. Labor’s pitch rests on shielding vulnerable Territorians, especially in remote communities where electricity costs consume up to 20% of their income. Yet, their record stumbles. They promised $275 annual power bill reductions by 2025, but most faced $1,300 hikes instead. The 2023 energy rebates helped, but one-off payments vanished into rising costs, leaving systemic issues, like the NT’s diesel-dependent grids, untouched. Labor’s focus on immediate aid risks being a Band-Aid on a broken system. The really just intend to kick the can down the road.

The Greens, driven by a vision of systemic overhaul, advocate sweeping measures, free (taxpayer funded) dental care via Medicare, wiping student debts (by gouging the taxpayer yet again), and redirecting fossil fuel subsidies to renewables, which will evidently increase cost of living pressures. In the NT, they push for solar investment to slash power costs in remote communities, where 70% of energy is fossil-fuel-based. We have thousands of the sulphur and lead producing Chinese made products all over the NT, either not attached to the grid, or in tatters due to weather events. Their plan assumes long-term savings, but critics argue it ignores immediate needs. Past renewable projects in the NT, like solar microgrids, cut costs by 30% in some communities, but scaling them is slow and costly and the increase in cost to other taxpayers was over 15 X the savings to the locals. The Greens’ rejection of gas, vital for NT’s economy, would spike short-term prices, hitting manufacturers and households.

Phil Scott, a teal-style independent, states he blends community pragmatism with progressive ideals. He champions targeted relief, like subsidising (taxpayer funding) freight costs for remote stores, which can add $2 per kilo to groceries. Scott also backs small-scale renewables and tax incentives for local businesses hiring Indigenous workers. Which have both proven ineffective and divisive. His approach, rooted in localism, draws on what he considers a successful NT pilot programs, like freight subsidies in 2018 that lowered food prices 15% in select communities. The cost of these subsidies and the targeting of these to Aboriginal associated stores and NGO’s led to the closing of many outback businesses and reduced competition. The immediate skyrocketing of prices and the subsequent bail out by the taxpayer due to financial mismanagement, fraud and waste by these NGOs has devastated the communities and cost the average taxpayer over $1 Billion dollars to help less than 30,000 people. That’s a cost of about $33k each person to save them $2,000 a year at the grocer. Phil Scott, presents a repackaged version of inner-city progressivism under the banner of “independence.” His promises center on net-zero policies, sustainability rebates, and urban-centric ESG compliance standards. These are corporate-friendly slogans that play well in boardrooms and wine bars, not in Borroloola.

The Teal movement proposes more regulation and less production, wrapped in language about “community empowerment.” But without energy security, freight support, or real regional investment, their policies amount to expensive feel-good initiatives for people who already live comfortably.

One Nation, with its populist bent, demands a 3% cap on home loan rates to shield Territorians from rising interest rates, which hit 4.5% in 2024, and a 15% export levy on iron ore to erase national debt. They argue this would fund relief programs, but history warns otherwise, interest rate caps in the 1970s distorted markets, starved banks of capital, and froze lending. The NT, with its 60% homeownership rate, could face credit shortages, when the building industry is struggling, while an export levy risks alienating trade partners, indirectly raising costs for consumers. One Nation’s pitch is blunt, cut the fuel tax, invest in local supply chains, and prioritize Australians first. Their call to restore national infrastructure funding to the NT, reduce reliance on foreign imports, and support small business resonates with those sick of ideology and eager for tangible results.

Each party’s plan reflects a slice of truth but misses the whole picture. The Coalition’s market-driven approach could spur growth but risks leaving remote communities behind. Labor’s handouts offer quick relief (at the cost of the taxpayer) but dodge structural fixes. The Greens’ idealism ignores the NT’s gas-reliant reality, while Scott’s localism lacks scale and support proven failures. One Nation’s blunt tools might backfire, strangling the very economy they aim to save. Data shows the NT’s inflation rate hit 7.2% in 2024, 1.5 points above the national average, with remote households spending 40% more on essentials than suburban ones. Past policies, rebates, tax cuts, or caps, have attempted to dull the edge but never slain the beast of systemic cost drivers, freight, energy, and isolation. Which could all be defeated by competition, infrastructure investment and negotiating local energy production rather than exporting it.

True relief demands a blend of immediate aid and long-term investment. Subsidies for freight and power must pair with infrastructure, think solar grids won’t even work without sealed roads, and competition is required to cut costs permanently. Policies must respect the NT’s diversity, from Darwin’s bustling markets to the desert’s sparse outposts. Canberra’s promises sound sweet, but without precision and follow-through, they’re just hot air in a Territory that’s had enough of both.

From the author.

The opinions and statements are those of Sam Wilks and do not necessarily represent whom Sam Consults or contracts to. Sam Wilks is a skilled and experienced Security and Risk Consultant with 3 decades of expertise in the fields of Real estate, Security, and the hospitality/gaming industry. Sam has trained over 1,000 entry level security personnel, taught defensive tactics, weapons training and handcuffs to policing personnel and the public. His knowledge and practical experience have made him a valuable asset to many organisations looking to enhance their security measures and provide a safe and secure environment for their clients and staff.