The Northern Territory’s (NT's) 2025/26 Budget has been welcomed by Australia’s mining industry as a sign of the government’s intent to drive economic growth through resource development, tax reform and infrastructure investment.

The NT government’s first budget under Chief Minister Lia Finocchiaro and Treasurer Bill Yan outlines a path back to surplus by 2027/28, supported by strong contributions from the mining and petroleum sectors, which accounted for 25% of gross state product in 2023/24.

The government expects mining and petroleum royalties to increase from A$298-million in 2024/25 to A$346-million in 2025/26.

Cathryn Tilmouth, executive director of the Minerals Council of Australia (MCA) NT, said the budget underscored the importance of the minerals industry to the Territory’s plans to “rebuild" the Territory economy.

“To get there it needs to ensure the Territory has a competitive edge in attracting investment in minerals projects,” said Tilmouth. “This will create long-term sources of revenue, grow the economy, and provide the funds to be able to provide the services Territorians need.”

The MCA welcomed the NT government’s A$2.74-billion infrastructure spend, including key upgrades to highways and initial works for a new industrial subdivision in Tennant Creek.

“These will help to address infrastructure deficits and unlock some of the Territory’s untapped mineral potential in the regions,” said Tilmouth.

Association of Mining and Exploration CEO Warren Pearce also applauded the government’s investment stance, saying the budget “sends a strong signal to industry that the NT government want reform and are investing in their department so they have the tools to do so".

The budget increases funding for mineral industry development within the Department of Mining and Energy from A$916 000 in 2024/25 to A$1.5-million in 2025/26.

Pearce said the NT’s commitment to payroll tax reform – including having the highest payroll tax threshold in the country – would make the Territory more attractive to investors.

Both industry groups welcomed the government’s A$9.5-million yearly commitment to the Resourcing the Territory geoscience initiative.

“This programme opens up regions to increased mineral exploration by delivering a targeted geophysics program that reduces entry costs through early-stage, landscape-scale work,” said Pearce.

Tilmouth said co-funding programmes through the NT Geological Survey were “vital to increasing the Territory’s attractiveness to explorers which can potentially lead to unlocking full scale operations down the line".

The MCA also welcomed workforce-focused measures, including payroll tax exemptions for apprenticeships and trainees, free TAFE for young Territorians, and A$120-million for training and higher education.

“There will be a much-needed boost to building the Territory’s future,” said Tilmouth.