Two blueprints that could redefine the Northern Territory’s economic future were launched last week. The first was a government-led economic strategy and the other an industry-driven economic roadmap.
Both highlight that supporting the Northern Territory is not just an economic necessity; it is a national security imperative. By aligning defence priorities and economic development, Australia can ensure the Northern Territory is a resilient and self-sufficient pillar of our national defence strategy.
The Northern Territory Government’s Economic Strategy 2025 sets out a determined investment plan to drive economic growth using the Territory’s natural resources, strategic location and emerging industries. It prioritises renewable energy, critical minerals, transport and digital connectivity, tourism, and workforce capacity building. These areas are intended to enhance trade links with Asian markets and achieve annual growth in gross state product that exceeds national GDP growth.
Simultaneously, the Darwin Major Business Group’s What the Territory Needs 2025 roadmap presents an industry-led approach to the Territory’s economic revitalisation focusing on defence, agriculture and critical minerals. By upgrading Darwin Port and expanding renewable energy projects, it seeks to establish the Territory as a trade and energy hub while aligning with national security priorities to attract federal funding and international partnerships.
Both strategies recognise the Territory’s role in Australia’s defence posture and the fact that the Territory’s economic strength underpins national security. Revitalisation of the Territory could reduce reliance on imports, sustain defence operations and reinforce Australia’s ability to project power in the Indo-Pacific.
But progress to transform Northern Australia into a hardened defence hub is slow and limited to enabling infrastructure contained within the defence estate. For example, Defence has earmarked billions over the coming decade to strengthen northern bases. Beyond this, secure energy, stable digital connectivity, reliable water supply and resilient transport networks are required to sustain military operations and accommodate extreme demand surges during joint training exercises.
Defence investment in the Northern Territory cannot operate in isolation. Without a strong economy to sustain it, Defence will struggle to reach its full posting potential. The Territory needs affordable housing, healthcare, education and job opportunities for defence families and industry. Otherwise, recruitment and retention will suffer, places such as Darwin and Katherine will continue to be considered ‘hardship’ postings, and the Territory will be unable to build the workforce needed to support a growing Defence presence.
Both economic strategies recognise that private sector investment must be mobilised alongside government funding. The industry-led strategy can ensure a faster, more agile approach to infrastructure development by using private capital, streamlining regulations and incentivising business. Encouraging the private sector to co-invest in dual-use infrastructure—ports, airstrips and logistics hubs—will create lasting economic benefits while supporting defence capabilities.
Unlocking the Territory’s vast critical mineral reserves and energy resources must also be framed in a national security context. The Beetaloo Basin’s gas potential and the Territory’s deposits of rare earth elements can contribute to energy security and domestic manufacturing growth and self-resilience. The Adelaide River Off-stream Water Storage project ensures reliable potable water supplies for defence bases, training areas and disaster response operations. This shows how infrastructure investment can serve both economic and military needs.
The Northern Territory has a once-in-a-generation opportunity to become Australia’s northern powerhouse for defence and critical minerals. But success will require sustained bipartisan support and collaboration between government, industry and Defence. The window for action is narrowing. As regional tensions rise and global competition for supply chain sovereignty intensifies, Australia must seize the opportunity to strengthen its northern frontier.
Northern Australia’s economic revival presents a significant opportunity to enhance the region’s defence readiness while driving sustainable growth. Here’s how the two objectives can align:
1. Infrastructure Development Supports Defence Mobility
- Upgrading roads, ports, and airports for economic growth also improves military logistics.
- Enhanced dual-use infrastructure (e.g., Darwin Port, RAAF bases) enables faster deployment of troops and supplies.
2. Energy & Critical Minerals Strengthen Supply Chains
- Northern Australia’s renewable energy projects (solar, hydrogen) can power defence installations sustainably.
- Mining critical minerals (rare earths, lithium) reduces reliance on foreign supply chains for defence manufacturing.
3. Population Growth & Workforce Resilience
- Economic revival attracts skilled workers, addressing labour shortages in both civilian and defence sectors.
- Expanded Indigenous employment programs can support remote defence installations and surveillance efforts.
4. Strategic Industry Expansion
- Local manufacturing (e.g., drones, ship maintenance) supports defence needs while boosting regional economies.
- Cybersecurity and space industries (leveraging Northern Australia’s proximity to the equator) can enhance defence communications.
5. Enhanced Regional Partnerships
- Stronger trade ties with ASEAN and Pacific nations improve Australia’s strategic influence.
- Civil-military partnerships in disaster response (cyclones, floods) build dual-use capabilities.
Policy Recommendations
- Defence-linked grants for Northern Australia businesses.
- Tax incentives for companies investing in defence-supportive industries.
- Joint exercises leveraging upgraded infrastructure.
By integrating economic and defence strategies, Northern Australia can become a secure, prosperous, and strategically vital region.
