Cost-of-living pressure 'entrenching disadvantage' in the NT

Northern Territory families are grappling with escalating cost-of-living pressures, particularly concerning housing expenses, which now consume a greater share of income than in any other Australian region. The NT Council of Social Services (NTCOSS) warns that these financial strains are "entrenching disadvantage" for low-income households, with long-lasting consequences.

Claire Pirrett, interim chief executive of NTCOSS, stated that while everyone in the Territory is experiencing increased costs, those on low incomes are hit the hardest. "People who are already struggling are now experiencing a rapid rise in cost of living," she said. "It's entrenching disadvantage and those impacts are going to be felt for years and generations to come."

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Cost of living has increased for everybody across the Territory but it's those Territorians who are on a low income who are impacted the most.

The NTCOSS report identifies rental affordability, fuel and travel expenses, and power prices as significant pressure points. As of late 2025, the NT recorded the second-highest average rent nationally, with a three-bedroom house costing $710 per week, $60 above the national average. Territory families are dedicating 26.1 percent of their weekly income to housing costs.

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People who are already struggling are now experiencing a rapid rise in cost of living. It's entrenching disadvantage and those impacts are going to be felt for years and generations to come.

Pirrett highlighted homelessness rates, the highest in Australia, as a key indicator of cost-of-living stress. "We know the cost of living is extremely high, so high it is driving people to be homeless," she stated. Another indicator is the surge in power disconnections for households using prepaid smart meters, common in remote Aboriginal communities and some urban public housing. In 2024-25, there were 103,648 instances of power disconnections in major NT centers, a 30 percent increase from the previous year.

In response, NT Treasurer and Minister for Housing Bill Yan pointed to the government's HomeGrown grant program, which offers $50,000 and $30,000 grants to help families enter the housing market. Since its launch, 510 grants have been approved and paid. Yan also noted an increase in construction activity over the last quarter, suggesting efforts to boost housing stock.

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We know the cost of living is extremely high, so high it is driving people to be homeless.