Calls for agreement as homeless shelter closure threatens vulnerable Territorians

Dechlan Brennan Published September 1, 2026 at 12.00pm (AWST)

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More than 230 vulnerable people, including children, who are currently waiting for support in the Northern Territory will need to find alternative accommodation after the government ordered a homelessness service to stop accepting new check-ins. (Image: NT News)

An agreed model that supports the thousands of people experiencing homelessness in the Northern Territory is vital, advocates say, ahead of the imminent closure of Darwin's largest homeless shelter.

The comments from the Yilli Rreung Housing Aboriginal Corporation, Mission Australia, Aboriginal Housing NT and NT Shelter come as YiSSA Short-Stay Accommodation faces closure next month over a dispute over the site's cost.

In July, the Country Liberal Party (CLP) Government gave Yilli Rreung 90 days to vacate its short-stay accommodation premises. Whilst the site sits on Crown land, the accommodation blocks are owned by Ausco and leased to the NT Government under a five-year agreement worth between $2.5 million and $3 million per year.

In a joint statement, the four advocacy groups urged both parties to continue speaking to "ensure the needs of the most vulnerable Territorians are met".

Following the directed end of client intake on July 27, there are currently 233 people, including 85 children, at the facility, they said, with a further 300 — including almost 90 children — on the waitlist.

"People still at YiSSA are facing uncertainty about where they will go next," Yilli Housing Aboriginal Corporation CEO Yvette Park said. "Families with children are feeling the impact, and staff are working hard to support residents through a very uncertain time."

*YiSSA Short-Stay Accommodation. (Image: Yilli Rreung Housing Aboriginal Corporation)*

Cost disagreement

A dispute has emerged between the Commonwealth and NT Governments, with the latter arguing it will not pay the price Ausco is asking for the entire 300-room facility.

Speaking on Darwin's Mix 104.9 on Monday morning, NT Chief Minister Lia Finocchiaro shut down any chance of the site being purchased at the reported rate — which she declined to reveal — calling it a "waste of taxpayers' hard-earned money".

"I'm not aware of the exact details, but it's far more than what we think should be paid," she said, "and we just can't waste people's money irresponsibly like that, and even if the Feds want to, it doesn't mean we'll sign on to that."

However, federal Minister for Indigenous Australians Malarndirri McCarthy said Ausco was only seeking $6.5 million for the demountables on the site, of which the Commonwealth would pay $3.5 million and the NT Government $3 million — in line with the latter's previously reported valuation of the site.

Speaking to the same radio station on Tuesday, Senator McCarthy said that in conversations with Ausco, they had agreed they would offer the site to the Commonwealth "as much as the Northern Territory Government".

"And I thought it was a pretty sensible step to go in partnership with the Northern Territory Government, which I have genuinely tried to do in good faith, trying to work with Minister Robyn Cahill and unfortunately just seems to be going off the rails with a lot of information that I believe is incorrect and I do think it can be corrected," she said.

The NT News reported on Tuesday that the $6.5 million cost did not include up to $3 million per year to lease the structures whilst the deal was settled, citing correspondence between the NT Government and Ausco seen by the publication.

Ms Park said Yilli remained "committed to working constructively with the Northern Territory Government and the Australian Government to ensure an outcome is agreed that meets the significant demand for homelessness accommodation across Greater Darwin".

*Senator Malarndirri McCarthy at the YiSSA short-stay facility last week. Image: Supplied*

Future model up in the air

On Monday, Ms Finocchiaro claimed the federal government's priorities in supporting the facility were "topsy turvy", before stating Ms Cahill would announce a transition plan for the residents of YiSSA in the coming days.

"Minister Cahill should have an announcement about what that transition plan looks like soon, we're thinking in the next week or two we should be able to provide clarity on that," she said.

"There will be an alternative and if we have to go into the alternative alone then so be it, but we're not in the business of wasting money."

Advocates say any future model will need to respond to the "significant level of demand currently being met by YiSSA".

The Northern Territory has the highest rate of homelessness in the country, at almost 12 times the national average. Aboriginal and Torres Strait Islander people comprise 87 per cent of the Territory's homeless population.

"A substantial loss of accommodation capacity," the four groups said on Tuesday, "would place additional pressure on social housing, hospitals, the child protection system, police and other frontline community services, while increasing the risk of overcrowding in urban and remote communities, and rough sleeping in Darwin."

They also noted YiSSA provided additional accommodation for those impacted by the NT's wet season, including flooding.

"With the end of the dry and onset of the wet — wet weather responses for people in Darwin and across the Top End are vital," AHNT's Leanne Caton said.

"YiSSA provides a critical and cost-effective surge response to ensure the health risk of melioidosis is reduced for people in Darwin and the needs of people impacted by flooding are met. YiSSA provides this vital service to people across Greater Darwin and the Top End, and it will soon be needed again."