The Australian Medical Association (NT) has expressed alarm at the Northern Territory government decision to scrap minimum unit pricing for alcohol, which it called "a crucial measure to reduce alcohol-related harm in the Territory".

AMA (Northern Territory) President Dr Robert Parker said the decision by the CLP Government marked the end of the $1.30 per standard drink floor price, introduced in 2018 to curb alcohol-related harm.

"This decision is a backward step in reducing alcohol-related harm in the Northern Territory, which historically has the highest per capita costs and harms of alcohol consumption in the nation," Dr Parker said.

"The MUP has contributed to significant reductions in alcohol-related harm, and its removal could reverse these gains.

"The Menzies School of Health Research strongly advocated for the implementation of a minimum unit price for alcohol, highlighting its potential to significantly reduce alcohol-related harms. And further research has found that the MUP policy successfully targeted and reduced cask wine and total wine consumption."

Dr Parker said the NT AMA was concerned the Territory's most vulnerable populations including First Nations communities could be disproportionately affected by the policy change.

"Removing the MUP could lead to a rise in alcohol-related incidents, including violence, hospital admissions, and chronic health issues," he said.

"We are urging the NT Government to reconsider the decision and maintain the MUP to protect public health and community safety."

Prior to the passage of the legal change through parliament, the Aboriginal Medical Services Alliance Northern Territory warned that the floor price was "vital to protect the health and wellbeing of all Territorians".

The Liquor Legislation Amendment (Repeal of Minimum Pricing) Bill 2024 passed NT Parliament on Tuesday evening.

The Country Liberal government claimed the minimum unit price was "based on ideology", without elaborating on what that means specifically, and said it "failed to achieve meaningful outcomes while imposing unnecessary burdens on responsible consumers and businesses".

NT Minister for Tourism and Hospitality Marie-Clare Boothby said the government listened to the concerns of the community and industry, ensuring policy is rooted in evidence and effectiveness".

"We are committed to supporting a strong hospitality sector while ensuring alcohol policy is responsible, targeted, and evidence-based," she said.