Independent Victorian Senator Lidia Thorpe has intensified calls to suspend federal funding for Northern Territory police, arguing the government is misappropriating Indigenous money intended to close the gap.
The Gunnai, Gunditjmara and Djab Wurrung senator labelled the allocation of $205 million to NT Police in March 2025 as a betrayal of Indigenous communities. She described the funding, branded as “Closing the Gap” money, as a misuse of resources that should be directed toward community services and youth programs.
“Shamefully in March, we saw the federal government give $205 million to the NT police, and incredibly the Albanese government branded this money as ‘closing the gap’ money,” Thorpe stated in July 2025.
“It should be withdrawn and reinvested into our communities and our services.”
A Pattern of Controversial Funding Decisions
This isn’t the first time Thorpe has raised concerns about Indigenous funding flowing to police forces. In May 2023, a heated Senate Estimates hearing saw the senator clash with Labor’s Assistant Minister for Indigenous Australians, Malarndirri McCarthy, over $14.2 million allocated to NT Police from the National Indigenous Australians Agency.
Senator Lidia Thorpe
During that explosive session, Thorpe asked bluntly: “Is black money being used for NT police?”
Public servants confirmed the funds were designated for “high visibility police and law-enforcement operations” including targeting alcohol-related offences and boosting security in public places.
The confrontation escalated when Thorpe expressed her disgust at the allocation.
“I am so violated from that answer. I am so disgusted when the Northern Territory police get $14 million when our youth services are struggling,” she said.
Senator McCarthy fired back, defending Indigenous police officers working to improve conditions. The exchange ended with both senators withdrawing inflammatory remarks before Thorpe stormed out of the hearing, declaring it “an absolute disgrace.”
The Incarceration Crisis Driving the Controversy
Thorpe’s objections are rooted in alarming statistics about Indigenous incarceration in the Northern Territory. Recent data shows 2,842 people are currently imprisoned in the NT, with almost 90 per cent being Indigenous Australians.
Nearly half of those detained are on remand, meaning they haven’t been convicted or sentenced. Many are ultimately released with no custodial sentence or freed on time served.
The senator points to disturbing reports of children being held in adult police watch houses. Almost 400 Indigenous children were detained in NT police watch houses over a six-month period, with nearly 20 incidents of self-harm recorded among children in youth detention facilities during that time.
“You can’t close the gap by locking our kids in cages,” Thorpe declared. “The NT Government is violating the rights of children every day, and the federal government is funding it.”
Growing Support from Aboriginal Organisations
Thorpe isn’t alone in her demands. The North Australian Aboriginal Justice Agency, the Northern and Central Land Councils, Justice Not Jails, and the National Network of Formerly Incarcerated Women have joined her call to suspend federal police funding.
North Australian Aboriginal Justice Agency (NAAJA)
These organisations argue any funding must come with strict conditions to reduce incarceration rates, or be cut entirely.
The groups have expressed particular concern about the CLP government’s recent legislative changes, including tougher bail laws and rolling back the minimum age of criminal responsibility from 12 to 10 years.
Government and Police Response
Federal Minister for Indigenous Australians Malarndirri McCarthy has acknowledged serious problems in the NT justice system while defending the government’s approach.
“There is something very wrong with the Northern Territory justice system when an 11-year-old girl is held in an adult police watch house for two days and one night,” McCarthy stated.
However, she has resisted calls to suspend funding, instead pointing to government investments in Indigenous support organisations.
The Northern Territory Police Association condemned Thorpe’s comments in the strongest terms, calling them “disgraceful” and demonstrating a “severe lack of understanding” of the challenges faced by NT police.
Deaths in Custody Milestone
The controversy occurs as the number of Indigenous deaths in custody since the 1991 Royal Commission reached a grim milestone of 602, with 17 deaths recorded in 2025 alone.
Thorpe argues the federal government must use its financial power to force change.
“The federal government can withhold funding, and they can legislate minimum standards in line with our international human rights obligations,” she said. “So far, they have not used these powers, and they’ve been contributing to the problem.”
The senator has also highlighted other contentious funding decisions, including over $41 million in NIAA funding allocated to the AFL and NRL during the 2024 financial year.
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What Happens Next?
As pressure builds on the Albanese government to address the incarceration crisis, all eyes are on whether federal authorities will attach conditions to future police funding or redirect resources toward community-led programs.
The debate raises fundamental questions about how Indigenous funding should be allocated and whether current approaches truly serve the goal of closing the gap in outcomes for First Nations Australians.
For Thorpe, the answer is clear: “These kinds of laws directly contribute to more deaths in custody. If the Northern Territory Government won’t listen to the experts and communities, then the Commonwealth must act.”
Frequently Asked Questions
Q: What is “black money” in this context?
A: Senator Thorpe uses the term “black money” or “Blak money” to refer to federal funding intended specifically for Indigenous Australians and their communities, allocated through agencies like the National Indigenous Australians Agency.
Q: How much federal funding has gone to NT Police?
A: The federal government allocated $205 million to NT Police in March 2025, with an additional $14.2 million provided in 2023 for high-visibility policing operations.
Q: What is the Indigenous incarceration rate in the NT?
A: Almost 90 per cent of people currently imprisoned in the Northern Territory are Indigenous Australians, despite First Nations people representing a much smaller proportion of the overall population.
Q: What organisations support Senator Thorpe’s position?
A: The North Australian Aboriginal Justice Agency, Northern and Central Land Councils, Justice Not Jails, and the National Network of Formerly Incarcerated Women have joined calls to suspend police funding until incarceration rates decrease.
