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Boost for Central Australian roads in federal budget infrastructure commitments

Tourism Central Australia has welcomed the commitment to road projects in the region. (Supplied: Scott McConnell)

Millions of dollars will flow into road infrastructure projects across the Northern Territory in Tuesday's federal budget.

The infrastructure commitments — which across the country amount to $18 billion — include $132 million to seal the Mereenie Loop tourist drive, which connects Alice Springs to Kings Canyon and Uluru.

An additional $50 million has been earmarked for upgrading the Alice Springs to Halls Creek Corridor as part of an ongoing road project connecting the NT to Western Australia and Queensland.

Tourism Central Australia (TCA) chief executive Danial Rochford welcomed the funding commitment.

"The sealing of the Mereenie Loop road has been TCA's number one priority project for the last two years, and a lot longer than that," he said.

"But we've certainly intensified our advocacy around it in the last two years.

"This is great news for the tourism industry."

Calls for changes to the Tiger Brennan Drive and Berrimah Road intersection grew after a horrific crash in 2019. (ABC News: Cathy Harper)

In Darwin, an additional $55 million has been committed to build an overpass at the Tiger Brennan Drive and Berrimah Road intersection.

It will increase funding for the intersection, which is known as one of Darwin's most dangerous, to $110 million with joint contributions from the Commonwealth and NT governments.

Northern Territory Infrastructure Minister Eva Lawler said it was critical the project went ahead.

"We know the history of that intersection and that intersection is only going to get busier," she said.

"We need to make sure the traffic flows and continues to flow smoothly through there."

Ms Lawler said the NT government would have to match the Commonwealth's contribution to account for, in part, a near doubling of project costs.

"We are seeing a huge increase in the cost of [civil projects] at the moment," she said.

"The costs of some of these products such as steel, concrete, cement … have increased substantially."

Ms Lawler says the costs of infrastructure projects are ballooning. (ABC News: Felicity James)

More support for tourism operators 'critical'

Opposition Leader Lia Finocchiaro welcomed the funding for the intersection, but said the NT government should have acted sooner to fix the issue.

"That intersection out at Tiger Brennan [Drive] and Berrimah Road has been a huge issue for Territorians... for a very long time," she said.

"Instead of dealing with those safety concerns and building the overpass, the Gunner government dropped that area down to 80kmh. It's ridiculous that this is their solution to what we know is a dangerous intersection.

"With 20,000 motorists using that intersection, this is going to be welcome news to punters."

NT Health Minister and Tourism Minister Natasha Fyles said she would be using the pre-federal election period to lobby federal ministers on investing in the Northern Territory.

"We really need the Commonwealth government to understand that the delivery of services in the Northern Territory is different to other areas," she said.

"It costs more to deliver healthcare in, for example, Darwin and Alice Springs, and even further in our remote centres, than it does on the east coast."

She also said it was critical tourism operators were supported with further investment.

With fuel prices above $2 per litre across the Northern Territory and above $2.50 per litre in some remote areas, Ms Fyles said the NT government would do "whatever [it] can to reduce the price of fuel".

The federal Treasurer has hinted at a cut to the fuel excise under a package of cost-of-living measures in Tuesday's budget.

But she added the fuel price was "a complex issue with international factors at play".

"I do acknowledge the cost of filling up the family car is very significant at the moment and it's something that all governments should work together to address," she said.

Chief Minister Michael Gunner has said he would support a cut to the fuel excise.

Ahead of the budget, Council of the Ageing NT chief executive Sue Shearer has called for growth in aged-care worker wages, more aged-care packages and an effort to address housing access as well as rental affordability to help seniors with the growing cost of living.

She said a one-off payment to low and middle income Australians flagged in the budget was "better than nothing" but would not provide meaningful relief for seniors in the NT.

"[Changes to] the fuel excise might help, but a lot of seniors don't drive," she said

"[Cost of living for seniors] really is just a sad situation ... it's very, very worrying."

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