Federal budget 2022: Middle Arm a big winner in cash splash

Chief Minister Natasha Fyles said the federal budget recognises the NT as “the future of Australia” with a huge spend on infrastructure. Here’s how the budget aims to ease cost-of-living pressures.

With both electricity and gas prices tipped to rise about 40-50 per cent in less than two years, the budget needed to promise Territorians an ease on cost-of-living pressures.

Chief Minister Natasha Fyles said the Albanese government’s first budget would do exactly that, along with delivering more infrastructure and strengthening the economy.

A $2.5b infrastructure spend in the Territory – more than any other state apart from Victoria – tops the list of investments, with the Middle Arm precinct claiming all but $1b of the package.

Ms Fyles said the budget’s commitments to Territory infrastructure are “significant”.

“When you look at the investment into all of the Australian jurisdictions the Northern Territory is a standout, but that is because the Northern Territory is the future of Australia,” Ms Fyles said.

Chief Minister Natasha Fyles said the Middle Arm precinct will go through some of the most ‘rigorous’ assessments seen in the NT in the coming months. Picture: (A)manda Parkinson

“With our proximity into Asia and the emerging economies and the opportunities we have with renewables, we very much welcome this investment.”

The budget also contains $682m in road projects, notably the sealing of the Tanami Road and Central Arnhem Road, $440m to support development of regional logistic hubs, $29m towards new university places, and $80m for the new National Aboriginal Art Gallery in Alice Springs.

“The Territory Labor Government has (also) been advocating for cost of living measures, and this budget delivers,” Ms Fyles said.

“It will reduce the cost of living through cheaper childcare, cheaper medicines, paid parental leave and affordable housing, and assists the Territory in getting more private investment.

“My team and I have been working with the federal government when it comes to items of key enabling infrastructure, remote and urban housing, education, environment and renewables.

“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.”

The budget’s own outlook estimates electricity prises to rise by 56 per cent in the next 18 months, 20 per cent of which Australians will see by Christmas.

It also forecasts gas prices to increase 40 per cent by June 2024.

Treasurer Jim Chalmers said the federal budget delivers cost of living relief that is “responsible, not reckless.” Picture: NCA NewsWire / Gary Ramage

While the federal government said it would consider market intervention, Treasurer Jim Chalmers’ key remedies to cost of living pressures were cheaper child care, expanding paid parental leave, and building 30,000 new social and affordable homes.

The treasurer’s budget, which leaned heavily on Hawke-Keating rhetoric, framed a national housing policy announced as a Housing Accord between government, industry and investors with the goal of adding one million new homes to the nation’s housing stock before the end of the decade.

YOUR BUDGET GUIDE:

– Budget winners and losers revealed

– Your Federal Budget 5-minute guide

– Grim prediction for Australia’s future

A $61m funding increase over the next two years to bolster biosecurity funding follows the most recent mad-cow disease outbreak in Indonesia as well as an accompanying boost to defence spending.

There were also housing commitments of $100m for Northern Territory Homelands and $3.2m for homeless war veterans in Darwin.

While the cost-of-living relief announcements were heavily targeted towards childcare and paid parental leave, Territory households continue to deal with one of the country’s sharpest increases in inflation over the last financial year.

Independent economist, Dr Marcus Smith said when assessing cost-of-living pressures nationally, Darwin had the third highest inflation rate at 6.6 per cent over the year, behind Brisbane (7.3 per cent) and Perth (7.4 per cent).

“Darwin and the Northern Territory actually has the largest increases in household expenditures required to be able to purchase the same items in June 2022 they did one year ago,” Dr Smith said.

Businesses hoping for a targeted program for the region’s skilled worker shortage received little detail despite the national quota for migration lifting from 160,000 to 195,000 and a boost to funding for processing visa applications of $42m.

The budget deficit narrowed on previous forecasts to $36.9bn (1.5 per cent of GDP) and gross debt forecast to reach $927bn over the same period as Mr Chalmers warned of a deteriorating global economy in the next 12 months.

Dan Petrie is a data journalist with News Corp Australia. Dan also goes by the name of Data Dan and is a contributor to Sky News. Email [e-mail]