Chapter 5Improving physical and digital infrastructure
5.1It is well established that there are major issues with infrastructure and connectivity in Northern Australia. Many previous inquiries and reports have focused on addressing this lack of infrastructure and issues with communications networks. Established government programs, such as the Northern Australia Infrastructure Facility (NAIF) and the Mobile Black Spot Program, have led to measurable improvements for Northern Australia, along with more recent grant programs and time-limited funding for specific initiatives. However, parts of Northern Australia continue to suffer from limited infrastructure, particularly accessible roads and connectivity.
5.2The committee received a wide range of evidence about the inadequacy of infrastructure in Northern Australia and the improvements needed to enhance workforce development in the region. This chapter considers this evidence on physical and digital infrastructure, and covers:
initiatives to develop northern infrastructure, including through the operation of the NAIF;
issues raised about particular forms of physical infrastructure, such as roads, rail, airports and ports; and
issues raised about digital connectivity, including telecommunications and the internet.
5.3The chapter ends with the committee's views and recommendations.
The importance of adequate infrastructure and connectivity
5.4The committee heard that the development of projects in Northern Australia have been complicated by 'chicken and egg' cycles where infrastructure investment requires scale of demand and confidence in growth, but growth requires infrastructure development. The Livingstone Shire Council explained that the costs associated with capital expenditure, rising interest rates, a shortage of capital expenditure government grants and increasing construction costs limit growth in the regions, with 'no mechanism for industry to de-risk its position on capital expenditure growth'. Similarly, the Cooperative Research Centre for Developing Northern Australia noted that Northern Australia is 'often referred to as "too risky" and only those with a "pioneering spirit" are game enough to invest'.
5.5However, evidence to the inquiry emphasised the importance of infrastructure and connectivity, both physically and digitally, to the growth of jobs, supply chains, and the economy in Northern Australia, as well as to improving overall liveability. Further, a lack of appropriate infrastructure adds to the costs of doing business Northern Australia. The Northern Land Council highlighted the connection between infrastructure and economic growth:
Having the necessary strategic infrastructure in place is fundamental to the growth of businesses and employment opportunities in remote areas of the NT, and substantial investment is urgently needed. Roads, bridges, barge landings and other transport facilities; communications technology; housing; and the provision of power, waste and adequate water supplies provide the foundation for economic activities yet are inadequate in many areas of the NT. Inadequate infrastructure can also restrict the participation of Aboriginal people in the workforce.
5.6Remote communities are particularly affected by limited infrastructure and digital connectivity. As Ms Sonja Johnson from Regional Development Australia Tropical North noted:
… enhancing connectivity, both physical and digital, is vital. During the wet season many of our areas are cut off, disrupting both supply chains and access to employment. Upgrading transport infrastructure and improving digital connectivity will ensure that remote communities are not left behind.
5.7However, witnesses also explained the practical challenges associated with developing infrastructure in Northern Australia. For example, Mr Jeff MacLeod from the MacDonnell Regional Council spoke of the difficulties Central Australian communities face maintaining or establishing infrastructure because of the climate:
Another issue is infrastructure, mainly community infrastructure. Our communities don't have footpaths, kerbing or drainage. The roads get thinner every year, simply through wear and tear, and the major connector roads are all dirt … already, four of my communities have been cut off as of this morning and two of the airstrips are closed. So those communities are now isolated by road and air, already, and we're only one day into this [high rainfall] event.
Australian Government initiatives to improve infrastructure in Northern Australia
5.8The Australian Government's 2015 White Paper on Developing Northern Australia dedicated an entire chapter to infrastructure. Similarly, the Australian Government's Northern Australia Action Plan 2024–29 (the Action Plan), released in August 2024, included infrastructure as its second policy priority area, focusing on housing, roads, aviation, ports, water and digital connectivity. The Action Plan states that the Australian Government will continue 'to work with state and territory governments to understand and address current and future infrastructure needs and priorities in northern Australia'.
5.9Funding committed to particular categories of infrastructure is set out below.
The Northern Australia Infrastructure Facility
5.10The Minister for Northern Australia has called the NAIF 'the centrepiece of the northern Australia agenda'.
5.11The NAIF provides concessional loans for the development of 'critical infrastructure that has already been well planned' in Northern Australia and the Australian Indian Ocean Territories. The overall goal is to 'grow economies and populations and encourage private sector investment in all industries including resources, agriculture and water, energy, financing partnerships, social infrastructure, and transport and logistics'. Other forms of financial assistance that the NAIF provides includes equity investment of up to $50 million per project, and letters of credit, guarantees and similar instruments.
5.12As of September 2024, the NAIF had supported 33 projects worth $4.4 billion, with 92 projects in the pipeline. Current legislation provides for the NAIF to deliver $7 billion in funding (total) through to mid-2026. NAIF-supported projects are forecast to generate $33.8 billion in public benefit and support the creation of over 18 300 jobs, through projects that include:
upgrades to and expansion of airports in Darwin, Tennant Creek and Alice Springs;
social, affordable and specialist disability accommodation housing in Cairns; and
the production and export of high-quality salt from seawater using solar and wind energy in the Pilbara region, with the project committed to creating local and Indigenous employment and business opportunities over the more than 60 years of its operating life.
5.13The NAIF is governed by an independent board, which makes decisions about financial investment. Responsible Ministers give directions to the NAIF about the performance of its functions through the NAIF's Investment Mandate (which is set out in the Northern Australia Infrastructure Facility Investment Mandate Direction 2023). All projects must meet mandatory criteria:
the project involves development or enhancement of Northern Australia economic infrastructure;
the project will be of public benefit;
the project is located in, or will have a significant benefit for, Northern Australia;
loans will be able to be repaid, or refinanced, where financial assistance is provided in the form of loans;
projects not solely in the Indian Ocean Territories must provide an Indigenous Engagement Strategy and demonstrate how the project will help to improve outcomes for Indigenous communities; and
for projects funded through an alternative financing mechanism in the form of equity or equity-like investment, this will generate a return to government.
5.14While there was recognition that the NAIF had enabled the development of significant investment and infrastructure in Northern Australia, some witnesses still observed gaps in infrastructure delivery and were not always satisfied with the operation of the NAIF. CopperString 2032 (formerly known as CopperString 2.0) suggested that capital from the NAIF and other similar government agencies 'is provided in a way that doesn't address the scale, development cost and risk characteristics unique to Northern Australia'. Further, the NAIF's mandate has:
… not been focused on transformational investment proportionate to the transformational opportunity inherently linked to many of Australia's ambitions and obligations with respect to clean energy, critical minerals and food production.
Based on CuString's experience, Government initiatives need the ability to provide capital through the entire project life-cycle from incubation through pre-construction development phase and finally through construction and potentially long-term ownership. More flexibility in risk allocation mechanism, while prudently balancing risk and return, is required to enable infrastructure to be scaled in a way that facilitates the growth in demand necessary to achieve Australia's decarbonisation ambitions.
5.15In the 2024–25 Budget, the Australian Government committed $1.9 million to an independent statutory review of the Northern Australia Infrastructure Facility Act 2016 (NAIF Act) to 'provide advice to the Government on how to most effectively invest in economic infrastructure development across the north, crowd in additional finance sources [sic] and realise economic and population sustainability objectives'. The review will also determine whether the time limit of 30 June 2026 for making decisions to provide financial assistance should be extended. The review is expected to be finalised in late 2024.
Integrated physical infrastructure
5.16Despite the existence of the NAIF and billions of dollars of Australian Government funding spent or committed to infrastructure projects in Northern Australia, the committee heard that a more coordinated approach is needed.
5.17For example, CopperString 2032 argued that a national strategy is required aimed at transformational investment in Northern Australia infrastructure connected with energy transition, food security, critical minerals and defence.
5.18Professor Babacan from Regional Development Australia (RDA) called for more coordinated infrastructure planning, with a population strategy to align with workforce, infrastructure, amenity and land use planning to be coordinated together, advising:
… workforce is directly linked with economic development and, for that, infrastructure and land use. We're still fragmented around land use planning across the jurisdictions, and our infrastructure planning is not appropriate in terms of roads, supply chains and digital connectivity, east-west connectivity, infrastructure, skills, access to health and social services, and access to education and training.
5.19Professor Allan Dale, who works with the Cairns Institute, Northern Universities Alliance, and Cooperative Research Centre for Developing Northern Australia, also noted the importance of 'a long-term program of significant enabling infrastructure works' to move away from the project‑by‑project approach. Professor Dale also spoke to the high community engagement and socio-economic successes of coordinated and collaborative approaches to infrastructure, suggesting that major cross jurisdictional projects have been successfully delivered in Cape York.
5.20Mr Leslie Manda from the Central Desert Regional Council acknowledged that federal funding could not be made available for 'every single small community' and instead recommended the development of defined community hubs in key remote communities. Social facilities such as sporting facilities and internet access and so on—could be developed in these hubs to reduce urban drain, keep youth in communities, and develop a local workforce.
5.21The Commonwealth Scientific and Industrial Research Organisation (CSIRO) was of the view that future investment needs to be carefully targeted, suggesting that some current and emerging industries require 'an integrated logistics network of road, rail, sea and air freight in conjunction with supporting intermodal facilities'. In addition:
Storage, either stand alone or integrated with intermodal, can also provide up-country storage capacity. This can mitigate risks of shortage of key commodities when other parts of the transport network are disrupted, whilst opening access to new markets. A recent supply chain mapping initiative for Inland Rail has shown the benefits of an integrated cross-modal network.
5.22The Northern RDA Alliance also supported an integrated approach, proposing 'hub and spoke distribution solutions aligned to freight distribution by air, sea and rail' which would 'seek to incorporate multimodal transport solutions that utilise local and within region road freight and regional aggregation centres that are connected to air, sea and frail freight for transport between regions and connection to capital city ports'. It argued, would reduce the risk of 'freight blockages impacted by natural disaster events and reduce Greenhouse Gas emissions along the value chain per unit of freight product movement'.
Issues raised about particular forms of infrastructure
5.23In addition to the above calling for an integrated approach, some evidence concerned issues and proposals for change with particular forms of infrastructure, including roads, rail, air and ports. This evidence is set out in detail below.
Roads
5.24The Action Plan set out major government investments in roads Northern Australia (Figure 5.1 below).
Figure 5.1Major road investments in Northern Australia by the Australian Government
AGC = Australian Government contribution
Source: Australian Government, Northern Australia Action Plan 2024-2029, August 2024, p. 35.
5.25While there has been significant funding to the Northern Australia road network the committee heard that further coordinated investment is needed, to improve liveability and enable local industries including agriculture, manufacturing, mining and tourism, and help create jobs.
5.26Further, the Clean Energy Council warned that emerging industries associated with the clean energy transition 'will require investment in civil infrastructure. Access roads will be needed to facilitate the transport of materials and workforce'.
5.27Submitters drew attention to the inadequacy of road infrastructure in Northern Australia, pointing to:
poor routing of roads (for example through river drainage basins), so people are unable to travel during the wet season;
poor quality or not fit for purpose design and construction (e.g. narrow roads, bridge load capacity, dirt versus paved surface);
high maintenance and replacement costs and timeframes;
the remoteness of some roads; and
damage and destruction of road infrastructure caused by heat, cyclones and flooding, all of which are expected to be exacerbated by climate change.
5.28These factors can have detrimental flow on effects on supply chains and transport costs, tourist travel and the provision of essential services. The Local Government Association of the NT explained:
The majority of remote community main access roads are unsealed and flat blade roads which when it rains it invariably results in flooding and communities become isolated leaving residents with no access to essential services.
5.29The Northern Land Council warned 'one of the most significant impediments for development on Aboriginal land is suitable road access. This also presents a barrier to tourism, a sector that is an important economic driver for the NT and is a future growth area for Aboriginal business'.
5.30Submitters called for further investment by the Australian Government into road networks and infrastructure.
Rail
5.31As with roads, stakeholders considered that the rail network across parts of Northern Australia is inadequate.
5.32For example, the Rural Doctors Association of Australia flagged the centrality of rail, as part of a broader transport network including roads, ports and airports, to 'the establishment and maintenance of health services in Northern Australia, including for the workforce and patient transport and retrieval and the seamless operation of supply chains. Reliable transport is a necessity for delivering equitable healthcare'.
5.33The Australian Sugar Milling Council called for more government support for railway to enable expansion of the sugarcane industry.
5.34Initiatives the Australian Government outlined in the Action Plan to improve the provision of railways included $440 million in planned equity to build new, regional logistics hubs in Allice Springs, Katherine and Tennant Creek and increase capacity in the NT rail network.
Air
5.35The 2015 White Paper acknowledged that Northern Australia 'is failing to benefit' from its strategic position between Asia and cities in southern Australia, with most airline passengers staying in major cities. The White Paper noted that 'aviation and land transport services to Northern Australia will play a critical role in the long-term development of the region'.
5.36Since then, Northern Australia has continued to suffer from lack of critical air connectivity. RDA Tropical North noted that 'currently the most outer and inner regional areas of Northern Australia have some connection to capital cities, but often have very limited connection to other regional areas across Northern Australia'. Flights across Northern Australia are often limited, time consuming and expensive, and can be unreliable. The committee was advised that services are inadequate because of:
insufficient competition;
restrictive cabotage; and
unsuitable infrastructure, which does not allow bigger and more efficient aircraft.
5.37As with roads and rail, airport infrastructure is vulnerable to climate change and extreme weather events, isolating communities and preventing workers from travelling. This is concerning because, as Mr Bill Dixon from Catholic Education Services Cairns pointed out:
Air travel is the only form of travel from some of these places during the wet season, and particularly the wet season we've just experienced. People coming out of Weipa for Christmas would have had to fly out and fly back in, because driving would have been pointless. There are all of those extra impediments to people living in our communities.
5.38In addition, the cost of air travel is contributing to some families deciding to leave Northern Australia:
Workers need and expect low cost and frequent air services to from the north. Currently flights are exorbitantly expensive and infrequent in most parts of north Australia. Many workers cite the poor air services in the region as a major disincentive for living in the area. This issue becomes especially problematic with new families in the north who ultimately return to their original homes due to the high cost of seeing interstate family.
5.39The Australian Government, when outlining areas for continued focus for short‑ to medium-term action in the Action Plan, listed continuing 'efforts to improve the affordability, accessibility and reliability of air services in the north'. The Action Plan noted that the Australian Government is developing an Aviation White Paper 'to set out the Australian Government's policy agenda for the aviation sector out to 2050'.
5.40The Aviation White Paper was released on 26 August 2024, with a chapter dedicated to 'connecting regional Australia'. It stated that the Australian Government intends to commission the Productivity Commission 'to investigate the determinants of regional airfares'. Further:
the Remote Airstrip Upgrade Program will be extended with $50 million over three years to improve the safety and accessibility of remote airstrips across Australia; and
the Regional Airports Program will be extended with $40 million over three years, to improve safety and connectivity of regional airports and to provide grant funding for regional airports to invest in the technology and infrastructure needed to make the transition to net zero and improve climate resilience.
5.41The NAIF is funding other ongoing airport upgrades, including:
NT Airports Infrastructure and upgrades—'NAIF's loan will help expand airport facilities at three Northern Territory airports and support the development of the Territory's export potential, particularly for agricultural products';
North Queensland Airports Upgrade—'NAIF's loan of up to $155 million will be used to upgrade key infrastructure at Cairns and Mackay airports within the next five years'; and
Redevelopment of Townsville Airport—the $50 million loan will be used for a terminal refurbishment at the Townsville Airport.
Ports
5.42Ports in Northern Australia are a key focal point for local industry, in particular agriculture and mining, enabling international imports and exports, as well as defence and tourism.
5.43However, not all products produced in Northern Australia are shipped via ports in the region. For example, Cattle Australia noted that products from the few abattoirs in Northern Australia are often shipped out of southern ports because of access issues for shipping companies. In relation to live exports, Cattle Australia suggested that development of infrastructure is 'a pressing need for Northern Australia' that will lead to improved animal welfare outcomes because cattle will not need to be freighted significant distances. They argued that infrastructure pressures are 'significantly' impacting 'the profitability' of the industry.
5.44In some instances, development of ports is needed to support existing and emerging industries (e.g. green energy, aerospace, defence). For example, the North Queensland Bulk Ports Corporation suggested:
The focus on hydrogen is likely to also see heavy vehicles transition from diesel to a hybrid system using hydrogen cells which are currently in trials overseas at mine sites. The Port of Mackay is a key supplier of diesel to the mine sites and likely supplier of any future products supporting the transition to renewable fuels. Accordingly, careful consideration needs to be given to supporting the development and storage of renewable productions at the Port of Mackay.
5.45The Australian Government advised that it is investing significant funding in port infrastructure at several sites, including in the Pilbara where it is investing $565 million in common user port facilities to support energy projects, as well as $1.5 billion in Darwin as part of the Middle Arm Sustainable Development Precinct. In the Action Plan, the Australian Government outlined recent government action on ports related to Northern Australia, including:
$180 million for an expansion of the Cairns Marine Precinct;
$160 million through a NAIF loan to the Dampier Bulk Handling Facility;
approval for the Kimberley Port Authority application for extended border services at the Port of Broome; and
approval for Broome International Airport's application under the Australian Government's new and redeveloping international port framework.
5.46However, there were calls for the Australian Government to further support and expand regional port capacity, particularly where ports have limited first point of entry (FPOE) status for international vessels and goods. Councillor Tony Chafer explained some of the impacts of inadequate port infrastructure and biosecurity clearance at Wyndam, which has also meant that southern ports have needed to be used:
Because we're not allowed to bring containers into Wyndham, because of the lack of FPOE status, the growers are now making plans to export their cotton, grown in the Ord River district, out of Adelaide. They're going to build a facility in Katherine to truck the cotton to. They'll take it off the truck, stick it on a train down to Adelaide and take it out that way. That's another 4,000-kilometre direct trip there. We're just making it tougher and tougher for our agricultural industry to compete on the international market. That's going to have an impact on what they've got to charge to recover their costs.
Issues with infrastructure maintenance
5.47A further key challenge for Northern Australia, besides a lack of infrastructure, is maintenance of existing infrastructure. In some parts of Northern Australia maintenance work has not kept pace with increased use of roads over time. Further, there is limited funding available to address this maintenance backlog.
5.48In addition, as the Department of Health and Aged Care suggested, there is a 'lack of capital funding available to support investment in new buildings or the refurbishment of existing buildings to combat weathering or general deterioration'.
5.49Although infrastructure maintenance can provide opportunities for job development, some submitters also emphasised that remote area local governments struggle to raise rates, with this then limiting the ability of local governments to maintain infrastructure. Local governments called for:
more consistent, certain and long-term local government funding for infrastructure delivery, maintenance and upgrades, with funding provided directly to local governments (not via state/territory governments);
a review of local government funding models, considering whole-of-life funding for essential infrastructure in rural and remote councils;
a review of the methodology for the distribution of the Commonwealth's Financial Assistance Grants, with the grants to be restored to one per cent of Commonwealth taxation revenue;
a revisit of the quantum and distribution of the Roads to Recovery program; and
the Local Roads and Community Infrastructure Grants to be made a permanent source of funding.
Digital connectivity
5.50Previous reviews and analysis of digital connectivity have noted that lack of communications infrastructure is a major issue in regions that include Northern Australia.
5.51Digital infrastructure and connectivity in many parts of Northern Australia continue to be inadequate and unreliable, particularly during the wet season. This is not limited to Northern Australia; as the Australian Institute of Architects reported, digital inclusion metrics are over seven points higher in capital cities than in rural areas, with the digital divide particularly evident for Aboriginal and Torres Strait Islanders.
5.52Outside major urban centres, communities in Northern Australia face limited mobile phone coverage, and fewer, slower and less reliable fixed broadband and fibre-optic services. The Australian Institute of Architects noted:
Outside of the major urban centres, accessing mobile connections becomes problematic and inconsistent in most of Northern Australia.
Of the 750 Northern Territory communities and residential areas:
only 55 have mobile phone services;
only 43 have fixed broadband; and
only 40 are connected to the fibre-optic network
While services in major urban centres in Northern WA and Queensland have appropriate services levels, those living in remote parts of the North of both states face similar access issues.
Without investment in digital services at affordable prices, the region will continue to lag behind other parts of Australia. Furthermore, given the importance of connectivity to the day to day lives of many Australians and businesses, poor digital connectivity could become a major impediment to attracting skilled workers and business.
5.53Unlike in other parts of Australia, where connectivity can enhance services that exist face-to-face, parts of Northern Australia may have no services, making access to telecommunications and the internet essential for education, health and business needs, as well as construction and other services.
5.54The NT Government highlighted that digital connectivity challenges are particularly acute for remote Aboriginal and Torres Strait Islander communities, explaining that 'of the 45,000 people who live in remote communities in the Territory up to 10,000 have poor or no access to internet/phone services and many more have limited capacity to pay for access'.
5.55The Northern Land Council noted that telecommunications outages can last for days and 'such pressures on communities that already face high levels of economic disadvantage naturally reduce the capacity of community members to engage in work'. Other submitters and witnesses noted that a lack of, or limited, connectivity for people and businesses across Northern Australia impacts:
the ability of people to contact each other;
the operation of businesses;
the provision of telehealth, education and training and other essential services;
the utilisation of imagery, sensors and digital technology in industry; and
the attractiveness of Northern Australia as a desirable destination for workers.
5.56Lack of connectivity also impacts business in Northern Australia. Cattle Australia emphasised the need for improved communications infrastructure:
Given the sparse population and distances in Northern Australia, improvements to communication and cost structures would immensely benefit the industry, offering business efficiencies such as remote monitoring and improved contact with business communities, as well as providing workers with the ability to access tertiary education, information, services and be socially connected. Access to these is critical to improved workforce outcomes.
5.57The Action Plan acknowledged that 'higher costs and lower population density' in some isolated communities 'have historically discouraged commercial investment by telecommunications providers, leaving some communities' experiencing 'signal dropouts, blackspots, bandwidth issues and slow speeds'. The plan stated that the Australian Government 'is making significant investments in improving NBN Co's fixed line, fixed wireless and satellite broadband services', while emerging technologies like Low Earth Orbit satellites 'are offering consumers more connectivity options and increasing competition in regional markets'.
5.58The Australian Government has a number of measures in place to help improve the digital connectivity of communities in Northern Australia, including:
the Mobile Black Spot Program, which invests in telecommunications infrastructure to improve mobile coverage and competition across Australia;
funding for upgrades to phone and internet connectivity for communities across the NT, as part of the Digital Connectivity Project;
$1.1 billion in funding for the Better Connectivity Plan to improve mobile and broadband connectivity and resilience in rural and regional Australia;
the Regional Tech Hub, an independent service to help regional, rural and remote Australians connect, stay connected and make the most of new technologies;
$20 million for an independent audit of mobile coverage;
34 telecommunications infrastructure projects, delivered through grants under the Connecting Northern Australia Initiative; and
$68 million to support the digital inclusion of Aboriginal and Torres Strait Islander peoples, including:
the establishment of a First Nations Digital Support Hub and network of digital inclusion mentors; and
funding to improve the collection of data on Aboriginal and Torres Strait Islander digital inclusion.
5.59Submitters told the committee that they want to see faster, more reliable and affordable digital connectivity—including internet and mobile phone coverage. Measures proposed in evidence to address continuing issues with connectivity and telecommunications infrastructure included, for example:
acceleration of Smart Grid and National Broadband Network rollouts (both fibre and fixed wireless);
utilisation of redundant fibre networks held by energy and rail companies;
better use of shared infrastructure, particularly assets held by competitively neutral telecommunications providers;
more investment in digital connectivity in Northern Australia, particularly in remote communities;
require telecommunications providers to commit to a customer service guarantee for mobile network services;
a continuing coordinated approach between the federal, state/territory governments and private industry to improve telecommunications connectivity;
better provision of telecommunications infrastructure, including through the National Broadband Network, and grant programs, especially in rural and remote communities;
increased utilisation of Low Earth Orbit satellites, although there may be some issues with 'reliability, consistency and latency'; and
measures to improve digital literacy and capability, especially in remote communities. This could include training and development of community‑based technicians (in a culturally appropriate way) who can respond to infrastructure issues promptly as they arise.
Committee view
5.60Ensuring access to Northern Australia is essential to its economic prosperity, whether through roads, rail, air or sea.
5.61Access to reliable and affordable phone and internet would mean that people in Northern Australia could access services that are not located locally on the ground, and that they could stay connected to the rest of Australia. The temporary and permanent workforce of Northern Australia requires both transport and telecommunications infrastructure for the workforce to grow.
5.62As noted at the beginning of this chapter, established government programs such as the Northern Australia Infrastructure Facility and the Mobile Black Spot Program, have led to measurable improvements for Northern Australia, along with more recent grant programs and time-limited funding for specific initiatives. However, parts of Northern Australia continue to suffer from limited infrastructure and issues with connectivity.
5.63The committee's First Report, tabled in November 2023, also examined issues around infrastructure, airfares, ports and telecommunications. In that report, the committee recommended that the Australian Government:
develop a Northern Australia focused Regional Infrastructure Strategy with state, territory and local governments, with the Strategy to focus on:
how to address skilled labour shortages in infrastructure;
ensuring there is a sustainable pipeline of infrastructure; and
building the housing and construction industry in regional areas; and
explore options for a Regional Infrastructure Fund, to focus on supporting local employment in social, residential, commercial and civil construction projects.
5.64The committee's recommendations were focused on addressing housing shortages. The committee reserves further comment here on the above, save to note that the Australian Government is yet to respond to these recommendations, despite being required to do so within three months of the report tabling.
5.65On the issue of infrastructure more broadly, it is clear that programs such as the Northern Australia Infrastructure Facility are making a significant contribution to improving limited infrastructure in the region.
5.66Having heard from the Northern Australia Infrastructure Facility review panel, the committee is of the view that:
rather than winding up on 30 June 2026, the Northern Australia Infrastructure Facility should be maintained for the foreseeable future as a necessary mechanism for the development of Northern Australia;
the current threshold of $10 million for concessional loans should be changed, so as to allow for smaller concessional loans to be granted, especially in the case of meritorious Indigenous applicants; and
there should be changes to administrative arrangements in accordance with the recommendations of the panel.
5.67The committee recommends that the Australian Government:
extend and maintain the Northern Australia Infrastructure Facility for the foreseeable future beyond its currently scheduled wind-up date of 30 June 2026;
change the current $10 million threshold for loans, so that smaller concessional loans can be made to meritorious applicants; and
consider updating Northern Australia Infrastructure Facility lending criteria to emphasise and support viable projects developed to establish Aboriginal and Torres Strait Islander commercial enterprises and initiatives.
5.68The committee heard that, as things stand, existing initiatives have led to a project-by-project approach. A coordinated approach to infrastructure projects is needed—in other words, a big-picture overview of how infrastructure projects are connected, and where the gaps lie is required. The committee is of the view that the Office of Northern Australia is well positioned to perform this task.
5.69However, on the matter of ports, the committee did receive a considerable amount of evidence arguing that limited first point of entry (FPOE) status is significantly affecting industry performance and the development of the workforce in Northern Australia. In the First Report, the committee encouraged the Australian Government investigate ways to support ports to apply to expand their capacity. The Australian Government has not yet responded to this proposal. Given the centrality of ports to the economy of Northern Australia, the committee reiterates this proposal here as a recommendation.
5.70The committee recommends that the Australian Government develop a Northern Australia Ports Strategy to identify opportunities to stimulate economic growth and leverage existing government investments.
5.71Regarding connectivity, it is increasingly important that Northern Australian communities have access to adequate and reliable telecommunications infrastructure.
5.72In addition, sufficient time has not yet elapsed to determine whether new funding to improve phone signal and internet access has led to a significant difference to connectivity in Northern Australia, particularly for people living in remote Aboriginal and Torres Strait Islander communities.
5.73However, it appears that competitive grants funding provided through the Connecting Northern Australia initiative ended in the 2023–24 financial year. The committee notes that the 2024–25 Budget Papers do not appear to list further funding for the Connecting Northern Australia initiative. Given the evidence raised in this report about significant issues remaining with telecommunications infrastructure across many parts of Northern Australia, the committee calls on the Australian Government to commit to further funding for the initiative.
5.74The committee recommends that the Australian Government commit further funding for improving telecommunications infrastructure in Northern Australia.
5.75The committee notes that a range of options to improve connectivity in Northern Australia have been outlined at length by stakeholders. The committee encourages the Office of Northern Australia to examine the solutions proposed in evidence outlined in this chapter to address long-standing issues raised about connectivity.