Money from a joint $842 million Commonwealth-Northern Territory funding agreement to support key Aboriginal services in remote communities has yet to be spent, despite the Territory's declining closing the gap outcomes, newly released documents reveal.

The documents, requested by Senator Lidia Thorpe, show none of the money allocated under the Northern Territory Remote Aboriginal Investment (NTRAI) agreement — due to begin in December last year — has been distributed.

The delay comes as service delivery challenges continue across remote NT communities, many of which already experience disadvantage, poverty and lower socio-economic outcomes. The Territory also records the worst Closing the Gap outcomes in the country.

"The Northern Territory received an increase of almost $400 million in GST this year, taking its allocation to more than $5 billion," Senator Thorpe said in a statement after the documents were released. "This money is supposed to address these issues, but instead of funding services in remote communities, they are ploughing hundreds of millions into prisons and cops.

"Why would the NT want to close the gap when the Commonwealth rewards them with larger GST allocations for keeping the gap open?"

The document reveals major workforce shortages in remote healthcare services. In public clinics, 84 per cent of oral health therapist positions remain vacant, while a lack of accommodation in remote areas has forced the cancellation of visits.

In Alice Springs, despite being advertised three times, the role of Aboriginal Health Practitioner at NT Hearing Services remained unfilled.

"As of December 2025, 3 per cent of the oral health workforce identify as Aboriginal and/or Torres Strait Islander," the documents state.

"While this reflects meaningful participation, significant challenges remain in recruiting and retaining staff in key roles. A high clinical vacancy rate is currently being experienced, with a vacancy rate of 84 per cent of oral health therapists peaking in 2025."

In an NTRAI Progress Report Hearing Schedule from the NT Department of Health, the department argued modelling had demonstrated the "overall quantum of NTRAI health funding will not address total needs for the NT remote Aboriginal child population relative to levels of population disease and will not meet the full extent of demand across all remote communities".

"A strong focus on cost-effective prevention and access to care continues, reflective of the objectives and deliverables of the NTRAI health schedule. To support future funding alignment and future service transition opportunities, all relevant Commonwealth funding streams are being examined," they wrote.

When Senator Thorpe initially requested the documents, Finance Minister Katy Gallagher described the request as a "waste of the Senate's time" that was "not needed".

The Victorian Senator said the documents now showed why the minister had objected.

"It appears this agreement has stalled. The Minister for Indigenous Australians [Malarndirri McCarthy] and the Northern Territory Chief Minister [Lia Finocchiaro] owe us an explanation," she said.

"Looking through the Northern Territory budget papers, we can see millions of dollars that were expected to support essential services, including family support for children at risk of child removal and interpreter services, have not flowed."

As part of the Senate order, Senator Thorpe sought publication of "the sum of all payments made by the Commonwealth under each schedule to the Northern Territory Remote Aboriginal Investment Agreement (NTRAI) 2025-31" as well as a "breakdown of each payment made against each associated performance milestone".

In response, Senator McCarthy stated that "no payments have been made by the Commonwealth".

She also confirmed no documents existed relating to Senator Thorpe's request for "all progress reports and plans delivered under each schedule" under the NTRAI.

In March 2025, the NTRAI steering committee resolved to finalise a funding agreement by July 1.

However, the committee — made up of representatives from the federal and NT governments and Aboriginal Peak Organisations Northern Territory — did not finalise the agreement until December, noting that "negotiations have progressed slower than expected", with funding delayed by bureaucratic negotiations.

The steering committee's last communique was released in January.

The parties have also been unable to finalise a Monitoring, Evaluation, Accountability and Learning (MEAL) framework, which both governments had previously said would help align the NTRAI with Closing the Gap reforms.

Appendices throughout the NT budget papers attribute funding discrepancies and variations — including for vital services such as Aboriginal interpreters — to the "revised timing of Commonwealth funding under the Northern Territory Remote Aboriginal Investment agreement".

"The Territory Government appears to have missed key reporting deadlines, and the Commonwealth has confirmed no payments have yet been made under the agreement despite announcing it more than a year ago," Senator Thorpe said.

"The monitoring and evaluation plan hasn't even been finished, and it appears the steering committee hasn't met in months."

In comments provided to The Australian, the federal government said funding would be "made retrospectively", with the first tranche scheduled for June following the completion of the NT government's progress report.

"The NTRAI Partnership arrangements represent significant reform and a new way of working, including a deliberate shift to a stronger, partnership-based approach to accountability," the spokesperson said.

"Finalisation of the MEAL framework is expected by August."