Skyrocketing Prices in the Top End and the Federal Policy Impacts on NT Cost of Living

In the Northern Territory, particularly in Darwin and its remote communities, the soaring cost of groceries and fuel has become a punishing burden on households. A bag of tomatoes in some remote areas can cost four times what it does in suburban centres, while fuel prices have topped $3 per Litre in places like Pukatawagan. This is not merely an inconvenience but a structural failure that demands federal intervention according to the Political Parties, or does it?. The policies of Australia’s major political players, the Liberals/National Party and Country Liberal Party (CLP), Federal and local Labor Party, Greens, the NT’s teal candidate, and One Nation, offer competing visions to address this crisis. Each approach carries potential benefits but also risks, as history demonstrates.

The Liberals/National Party, alongside their NT affiliate, the CLP, advocate a market-driven approach emphasising tax cuts and deregulation. Their philosophy rests on the belief that reducing fiscal burdens on businesses and individuals stimulates economic activity, lowers prices, and fosters competition. In 2022, their federal budget delivered $100 billion in permanent tax relief, including a one-off $420 cost-of-living tax offset and a reduced company tax rate for small businesses to 25%, the lowest in half a century. The CLP, dominant in Palmerston and Alice Springs, pushes similar policies locally, arguing that tax breaks for small businesses in Darwin could incentivise more local suppliers, easing grocery prices. Historically, such tax cuts have spurred short-term consumer spending, evident in the 2020-21 tax relief that benefited 11 million taxpayers. However, critics point out that these measures often disproportionately favour higher earners and the suburban centres, leaving remote NT communities with little relief.

The Federal and local Labor Party, by contrast, prioritise targeted subsidies and social programs. Their 2022 Inflation Reduction Act introduced green energy tax credits, aiming to lower energy costs, including fuel, through sustainable infrastructure. In the NT, Labor’s focus on remote communities includes promises to overhaul employment programs and fund housing, to stabilise local economies and reduce reliance on costly imports. Labor’s 2025 pledge to lower the bottom marginal tax rate by a cent signals a commitment to easing burdens on low-income earners. Yet, past efforts like the National Rental Affordability Scheme wasted billions without addressing core issues like food insecurity and only worsened the housing crisis. Subsidies, while well-intentioned, consistently suffer from bureaucratic inefficiencies and fail to tackle root causes like supply chain bottlenecks in remote areas. The Nutrition North Canada program, a parallel example, and obviously copied by Labor policy writers, was criticized for lacking transparency and failing to target those most in need, a cautionary tale for Labor’s approach. It failed drastically and has cost the taxpayer billions and only worsened public health outcomes.

The Greens propose a structural overhaul, advocating resource rent taxes and carbon pricing to fund public services and curb corporate profiteering. Their 2022 campaign in Lingiari, gaining 11% of the primary vote, highlighted grocery costs in remote communities as a key issue. They argue that taxing multinational corporations would finance direct subsidies for essentials, levelling the playing field. However, their policies alienate businesses critical to NT’s economy, as seen in the backlash to similar resource taxes in 2010, which led to reduced investment in regional areas. The Greens’ focus on environmental justice, while promoted as noble, diverts resources from immediate cost-of-living relief, a misstep in a region where practical needs dominate.

The NT’s teal candidate, running in Solomon, channels voter frustration with high prices into a community-driven platform. Backed by Climate 200, this candidate emphasises integrity and evidence-based solutions, such as closing tax loopholes for multinationals to fund local relief. Their campaign resonates with Darwin’s academic suburban middle class, and those who profit from the pain and suffering of others, like those associated with NGOs and bureaucratic employees, who growingly feel neglected by major parties. And who are fearful the major parties will eventually end their gravy trains. Yet, the clear legislative track record, to vote predominantly with the Greens and Labor provides some worrying insight. Their impact nationally on legislation so far has been extremely destructive and wasteful. Past Teal efforts, like the 2019 push for tax reviews, to push higher GST gained traction but struggled to translate into real policy, their growing empowerment has had a devastating effect on the cost of living for average wealth creating Australians.

One Nation, with its populist bent, focuses on reducing immigration and promoting local production to cut costs. Their platform appeals to regional voters wary of globalisation’s impact on prices. However, their 2019 campaign in the NT showed limited traction, and policies like widespread tariffs, echoed in other populist movements, have backfired with those who are economically ignorant and suffering from global Trump derangement syndrome. U.S. tariff hikes in 2018 raised consumer goods prices by 3%, hitting low-income households hardest, but the income of those lower income households rose by 15% in that same period, it worked but any rise in costs and association with Trump isolates 33% of Australia’s electorate and is a warning for One Nation’s approach.

Federal relief measures, whether tax cuts or rebates, must navigate the NT’s unique geography and demographics. Tax cuts boost spending but often miss remote communities that rely heavily on subsidies. Rebates, like Labor’s proposed $6,000 newborn tax credit, offer direct relief but will again be swallowed by administrative costs, as has occurred every other time such ideas have been implemented. Ultimately, any policy must prioritise supply chain improvements, better transport links and local production, to deliver lasting relief. Without addressing these structural issues, NT wallets will continue to bear the brunt of policy missteps both federally and locally. 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 security and safety 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.