The Aboriginal Medical Services Alliance Northern Territory and Red Lily Health Board have condemned the Northern Territory government's decision to defer the tender for a new health facility in Gunbalanya and reallocate the $20 million that had been budgeted for its construction since 2023–24.

The medical groups said that despite assurances that funding was secured in the 2024–25 Budget, no progress has been made.

The building tender was then "quietly deferred" in the 2025–26 Budget, leaving community leaders and health sector partners seeking answers on where the money has gone; and why a project long acknowledged as urgent has been deprioritised.

"The Gunbalanya clinic is not fit for purpose and has been on the priority replacement list for over 20 years," said Red Lily CEO Brad Palmer.

"The project was approved, supported, and budgeted for. After two years of promises, the funding has now been redirected without consultation or explanation. It is incredibly disappointing, and the community deserves to know why it's no longer being delivered and why their health infrastructure has been sidelined."

Gunbalanya is home to approximately 1,500 people — the vast majority of whom are Aboriginal — and is cut off from road access each wet season. In 2024, the local health service delivered almost 20,000 episodes of care. This included 17 births, 83 anaemia checks for children, 351 heart disease risk assessments, 214 adults on chronic disease management plans, 719 general health checks, and 64 people registered with rheumatic heart disease.

"These numbers reflect both the high needs of the community and the tireless efforts of staff delivering care in challenging conditions," Mr Palmer said.

"But they are operating from a building that was never intended for modern primary health care. It is not fit for purpose and well past its use-by date."

The current facility, originally built as a hospital for patients with leprosy and tuberculosis, "remains structurally and culturally inappropriate". There is only one internal toilet for patients, consult rooms that require patients to walk through others, compromising confidentiality, and one waiting area for men and women, failing to meet basic cultural safety standards. The ambulance bay is far from the emergency room, and there is insufficient space for staff and visiting specialists.

AMSANT and Red Lily said in a joint statement on Tuesday that the building "is so rundown that many community members avoid it, delaying both preventative and emergency care".

Despite this, Red Lily Health Board said it "worked in good faith to support a smooth transition to community control".

The organisation agreed to a 1 July 2025 transition date following assurances from the NT Government that the building tender process was underway; assurances repeated for over 18 months.

"We've done all the planning. The design is complete and accepted. We're ready to go. But still, there's no building coming," said Marcia Brennan, Chair of Red Lily Health Board.

"This community has been let down at every turn. The NT Government has delayed the process and now the funding has quietly disappeared without so much as a conversation with the people affected.

"It is disrespectful; to the community, to Aboriginal people, to Red Lily as an Aboriginal organisation taking over this service, to AMSANT, and to the entire sector. It says clearly: this isn't a priority."

As an interim measure, Red Lily has requested urgent upgrades to improve conditions — including cleaning, painting, and the installation of additional toilet facilities — to encourage community members to return to the clinic.

Gunbalanya resident Andy Garnarradj said the community had waited too long for action.

"It's very disappointing after all the promises from government. Our Elders worked for years to secure this new clinic; many have now passed away, believing it was coming," he said.

"It feels like we've been forgotten, left in the dark. But we won't stop pushing. We need to keep working together to make this happen for the sake of our people; for our Bininj families and for all residents in Gunbalanya who deserve access to a proper health clinic.

"We need a clinic that respects culture, that's welcoming and safe. Right now, the building we have is not good enough for our community."

AMSANT and Red Lily urged "immediate transparency" about where the $20 million has been reallocated, and urgent action to reinstate the building tender; in full consultation with the community.

"This should not be about politics. Health services must be based on the needs of the community, and Gunbalanya has waited long enough," said AMSANT chief executive Dr John Paterson.

"You can't close the gap without strong foundations; modern clinics and a supported workforce are essential to deliver the care communities deserve."

"Accelerating the transfer of primary health services to Aboriginal community control is critical to improve outcomes for our people and communities. As it stands, we cannot transition services or recruit staff into buildings that are unsuitable and that have been neglected by the government for years.

"Every Australian deserves access to safe, quality health care. We wouldn't accept these conditions elsewhere, and we should not accept them here.

"AMSANT, Red Lily and the Gunbalanya community stand ready to work the NT Government to strengthen Aboriginal primary health care and improve outcomes for our people and communities, as a matter of priority."

NT Minister for Health Steve Edgington told National Indigenous Times that the Territory government is "focused on returning services to Aboriginal people in remote areas and we are looking forward to seeing Red Lily Health Board manage the Gunbalanya Health Centre".

"We are all about empowering communities and want to ensure that there are jobs on country for people living in remote areas," he said.

"When we came to government, we inherited an infrastructure program in chaos - stalled projects, unrealistic timelines, and escalating costs. Labor had announced a record number of projects but failed to allocate sufficient funding to deliver them. In fact, Labor planned a $250 million cut to capital works funding in 2025–26 in its last budget. The CLP Government has had to responsibly manage and reprioritise projects.

"We have not ruled out delivering a new health clinic in Gunbalanya. We will keep it on the program."