CDNA business proposal 2025

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Developing Northern Australia Centre for

BUSINESSPROPOSAL

Securing research and development for sustainable and inclusive development of northern Australia

2025

Recognising the continuing connection to Sea and Land Country of Australia’s First Nations People, the authors acknowledge the Traditional Custodians of the land and waters of northern Australia, and pay respects to their Elders past, present and emerging.

This business proposal was developed by the Cooperative Research Centre for Developing Northern Australia (CRCNA) It is intended for the nominated recipients only and is not to be shared or distributed further Published in July 2025, all figures and information were accurate at the time of publication but may be subject to updates or revision

Executive summary

Northern Australia stands at a critical juncture. Achieving sustainable, inclusive growth requires a more diversified and resilient economy, built on research, development, innovation, local capability, and climate-smart industries.

Context

Northern Australia plays a vital role in the nation’s future, yet its economy remains narrowly based, reliant on mining, largescale pastoralism, and government service delivery The region also holds deep Aboriginal and Torres Strait Islander histories, with the majority of land and sea under First Nations interests, making inclusive development essential

Since the White Paper in 2015, policy momentum has strengthened, and the Northern Australia Action Plan 2024–2029 outlines a vision for sustainability, First Nations partnerships, and climate-resilient infrastructure, supported by state and territory governments and the NAIF.

However, entrenched social disadvantage, climate pressures, and global shifts require a more coordinated, innovative, and knowledge-driven response.

Response

Research and development (R&D) is vital to building economic complexity, a proven driver of productivity, growth and resilience Innovation also enables more cost-effective service delivery in health, environmental and remote contexts.

In northern Australia, every $1 invested in R&D returns over $330 in economic output, alongside critical social and environmental gains. However, the region’s sparse population and limited economic base make sustained investment both more challenging and more essential

Since 2017, the CRCNA has delivered over $155 million in R&D investment, driving cross-sector innovation suited to the north With its term ending in 2027 and funding fully allocated, there’s a pressing need to sustain and scale this momentum.

Proposal

Building on the CRCNA’s legacy, the Centre for Developing Northern Australia (CDNA) will be a permanent, northern-based institution driving sustainable, inclusive development through three core pillars:

R&D aligned with national priorities.

Extension and capacity building to translate research into real-world impact, supporting First Nations and regional leadership and skills

Place-based solution brokerage that aligns investment with local social, economic, cultural, and environmental priorities. 1 2 3

Governance at a glance

A not-for-profit model reinvesting all returns into northern R&D.

An expertise-based Board with sectoral depth and diversity and an independent, Minister-appointed Chair.

Inclusive representation from research, First Nations, industry, and governments

Become part of northern Australia’s long-term architecture, supporting NAIF pipelines and helping integrate complex policy issues across the region

Next steps

A Commonwealth commitment of $100-120 million over ten years will anchor the CDNA and unlock an estimated $330-350 million in investment

Policy and funding decisions are needed within 6-8 months for effective planning and transition.

Delivering on the northern Australia agenda

Australia’s success depends on a thriving northern Australia.

Sustainable development in northern Australia hinges on two critical components:

diversifying and increasing the productivity of economic activities

enhancing livability and well-being for residents and communities.

Both are essential to regional and national resilience

Productivity remains a national challenge. The 2010s marked Australia’s weakest decade for productivity growth since the post-war era Northern Australia must play a central role in reversing this trend by contributing to national economic efficiency and innovation, including through cost effective service delivery innovations.

A robust R&D strategy is essential, one that is inclusive, place-based, and attuned to the region’s unique social, environmental, and economic characteristics. This strategy must:

leverage local knowledge and expertise

foster meaningful, cross-sectoral partnerships

drive innovation that reflects northern Australia's realities and aspirations

At the heart of this vision is the need for platforms that encourage collaboration, amplify diverse voices, and enable transformative ideas to emerge.

A Centre dedicated to northern Australia’s development can catalyse this shift, not just by funding research, but by coordinating efforts, extending impact, and embedding innovation into the region’s economic and social fabric.

Constraints and challenges

Economic development and productivity growth in northern Australia faces several challenges and constraints: 1 2 3 4 5 6 7 8

9

Infrastructure limitations – vast distances and dispersed populations make transport and logistics costly and inefficient.

Workforce and skills shortages – a small population base limits the availability of skilled labour, affecting industry growth

Economic complexity – the economy remains narrow, increasing vulnerability to global market shifts and reducing innovation potential.

Cultural and land considerations – development must acknowledge Indigenous land rights and cultural heritage, requiring trust-based collaboration

Environmental and climate challenges – harsh conditions and extreme weather events impact agriculture, tourism, infrastructure, and liveability

Investment uncertainty – complex regulation, navigating land tenure, and high operating costs make investment riskier and less attractive

Service gaps – many areas lack reliable access to health, education, and affordable food, driven by low population densities and economies of scale

Connectivity barriers – limited access to high-speed internet and telecommunications stifles innovation and modern service delivery.

Institutional fragmentation – overlapping jurisdictions and policy silos hinder coordinated R&D investment and delivery.

Addressing these challenges demands a coordinated, long-term commitment from government, industry, and communities, with research and development playing a central role in identifying solutions, unlocking opportunity, and de-risking investment

Enhancing productivity: the path forward

Since 2017, the CRCNA’s industry focus has supported productivity gains across the north. Contributing to national goals in sovereign capability, cost-effective service delivery, and evidence-based policy, they align with the Future Made in Australia agenda, enhancing locally led innovation and strategic de-risking.

These models show how place-based innovation can boost productivity and system resilience while de-risking investment and reducing reliance on narrow exports, with industries like agriculture playing a critical role in national food and fibre production This positions northern Australia as a vital driver of economic resilience and sovereign supply

Innovation in cost effective service delivery

Health research in telehealth, nutrition, and culturally aligned care has improved access to remote services, strengthened local health outcomes, and lowered delivery costs across rural and northern communities.

Biosecurity projects have reduced impacts of feral animals, invasive species, and disease, safeguarding productivity, strengthening supply chains, and cutting long-term management costs.

First Nations leadership & enterprise

Projects in aquaculture, forestry, carbon markets, and cultural economies have embedded First Nations priorities into local economic development on Country.

Initiatives reflect a shift from transactional to transformative partnerships, generating new regional value chains, boutique products and leadership with education, economic and health outcomes.

Regional, evidence-based planning

Critical data and spatial tools have improved policy decisions, guided land-use planning, and strengthened infrastructure prioritisation across regions and sectors

Scientific insights strengthen regional investment cases, reduce development risk, and enable government and industry to act with greater confidence

Supports RDAs and development groups by aligning local aspirations with national priorities

De-risking supply chains & emerging industries

CRCNA investments have mapped regional constraints through local governance and catalysed emerging industries in:

Tropical agriculture and aquaculture to new water infrastructure, digital farming and ecosystem services.

Projects that de-risk private investment and diversify the economic base are positioning the north as a key driver of national resilience and sovereign supply capacity

First Nations leadership and enterprise

Supporting Indigenous-led enterprises, spanning land and sea management, carbon farming, tourism, and innovation, is vital for inclusive development that strengthens self-determination and advances Closing the Gap outcomes.

Empowering First Nations communities is essential to unlocking northern Australia’s economic and social potential, with Indigenous peoples holding deep connections to Country and interests across more than 78% of the region The following CRCNA projects illustrate tangible contributions to Closing the Gap outcomes in economic participation, health, education, and cultural preservation.

Education Economic

Outcomes 6, 7: Students reach their full potential by engaging in education; and employment pathways

CRCNA education program: workforce development training, postgraduate and undergraduate student programs.

East Kimberley Indigenous Women: Self-development and self-employment

Project Echo: Telehealth Skills and Health eMinds workforce training.

Health, Wellbeing & Culture

Outcomes 1, 14, 16: Everyone enjoys long, healthy lives; with strong social and emotional wellbeing; supported by thriving cultures and languages

Attracting and retaining ATSI health workers; Health equity; Well-being informed health care

Eye screening; Economic assessment, Disability models for remote regions.

Telehealth and technician training for remote communities

Telehealth for chronic diabetic foot ion

Outcomes 8, 15, 17: Strong economic participation supports community development; cultural connection to land and waters; and access to information for informed decision-making

Activating the Indigenous estate: Baseline study of agricultural capacity

Business on Country: Land use diversification; Developing high value products from low value herds.

Spatially enabled planning for Groote Eylandt

Cape York Water Plan; Water Security Program Daly, NT and Gilbert, NQ catchments - resources, values and enterprise mapping

Indigenous seafood industry development; Blacklip Rock Oyster industry development; Commercial fishing and aquaculture in WA; Cherabin aquaculture production.

Traditional Owner led bush products sector; Kakadu Plum value chain efficiencies

Tiwi Islands northern tropical forestry.

Cultural market systems development.

Co-mapping on Country: Train the Trainer for sustainable agricultural development

Economic and social opportunities across sectors

Reaching our potential: northern Australia has significant opportunities to achieve sustainable and long-term growth across various sectors:

Indigenous-led enterprises – supporting Indigenous businesses in areas like land management, cultural tourism, and carbon farming can drive economic growth while respecting traditional knowledge. 1 2 3 4 5 6 7 8

Aquaculture, agriculture and agribusiness – expanding sustainable farming practices, including aquaculture and seafood products, tropical crops, livestock, and precision agriculture, to boost productivity while preserving natural resources

Water and land management – sustainable irrigation and land-use strategies can enhance agricultural output while maintaining environmental integrity.

Tourism and ecotourism – leveraging iconic landscapes, Indigenous heritage, and biodiversity to create sustainable tourism ventures that benefit local communities.

Renewable energy – the region has vast potential for solar, wind, and hydrogen energy projects, supporting Australia's transition to clean energy

Carbon economy – initiatives such as carbon farming and ecosystem services can provide economic benefits while addressing climate change

Infrastructure development – investments in transport, supply chains, digital connectivity, and logistics that improve access to markets and attract business investment

Mining and resources – sustainable extraction and processing of minerals, including critical minerals for renewable technologies, contributing to economic resilience

Unlocking this potential requires a coordinated, long-term approach that embeds R&D into every phase, from identifying opportunities d i ki nsuring inclusive benefit-sharing across indu

Policy context

The development of northern Australia has long been a national priority.

The 2015 Our North, Our Future White Paper laid the foundation for a 20-year vision to unlock the region’s potential. Building on that framework, the Northern Australia Action Plan 2024–2029 sets a refreshed, forward-looking agenda that responds to emerging challenges and aspirations

The Action Plan outlines six overarching policy priorities:

Unlocking growth through infrastructure 1 2 A safe and secure north

Activating the northern economy

Growing the northern workforce 3 4

Liveable, healthy, and resilient communities

Protecting the north’s environment and cultural heritage 5 6

Key cross-cutting themes include:

Advancing First Nations outcomes

Enabling transformational investment

Supporting the transition to net zero

Delivering on the Future Made in Australia agenda

Strengthening national security

Investing in resilient infrastructure

In tandem, the National Science and Research Priorities (2024) highlight the areas of research critical to solving Australia’s greatest challenges These include:

Transitioning to a net zero future

Supporting healthy and thriving communities

Elevating Aboriginal and Torres Strait Islander knowledge systems

Protecting and restoring Australia’s environment

Building a secure and resilient nation

These national agendas are deeply relevant to northern Australia and underscore the need for a dedicated institution to align R&D investment with these goals.

The proposed CDNA will be instrumental in delivering research and innovation that supports these policy objectives, not only in economic terms but across social, environmental, and cultural dimensions.

How does the CDNA fit with other major Commonwealth institutions?

The Australian Government has established several institutions to drive sustainable development in northern Australia. The CDNA is not intended to duplicate existing efforts but to bridge policy, science, and investment, acting as a catalyst and coordinator across sectors

Northern Australia Infrastructure Facility (NAIF) is the government’s flagship financier for the region. With over $44 billion in committed loans across 32 projects, it supports infrastructure in energy, transport, agriculture, and social services, with a strong emphasis on Indigenous engagement and job creation. NAIF's role is to fund development-ready infrastructure

The CDNA will complement this by delivering the applied R&D, data, and planning frameworks required to get projects to that stage

Office of Northern Australia (ONA) provides policy oversight and strategic coordination across Commonwealth agencies.

The CDNA will work closely with ONA to translate national policy into regional action, aligning R&D investment with evolving government priorities

Inform emerging priorities of both the Indigenous Reference Group and the Northern Australian Ministerial Forum.

Universities and research institutions

The CDNA will foster collaboration across research providers, including the Northern Australia Universities Alliance, CSIRO, Drought and Innovation Hubs, and universities, including the University of Western Australia

It will help align scientific capabilities with industry needs and regional aspirations, acting as a broker, funder, and integrator.

Regional Development Australia

Building on a strong history of collaboration, RDAs drive regional development by coordinating planning, partnerships, and advocacy across northern Australia's diverse communities and industries

The CDNA complements the northern RDA alliance by generating the evidence base, pilot projects, and applied research that inform and strengthen RDA-led regional development efforts.

Strengthening planning and investment decisions with evidence-based insights, aligns with RDA strategies, and helps turn regional visions into practical, investment-ready opportunities

The relationship is one of partnership and mutual reinforcement

The CDNA is not designed to duplicate existing efforts but to strengthen the evidence base by bridging research, policy, and investment It will act as a catalyst and coordinator, translating data and knowledge into action across sectors, helping to de-risk development in areas where the north has the most potential for sustained growth.

The CDNA will continue the CRCNA’s cross-portfolio approach, working with at least seven federal portfolios including health, science, environment, agriculture, Indigenous Australians, industry, and trade.

By aligning research and development with multiple government priorities, the CDNA ensures coordinated, place-based action that supports broader national agendas, from Closing the Gap and Future Made in Australia, to net-zero transition and regional economic development. Also recognising the importance of working with the Queensland, Northern Territory and Western Australian governments

The CDNA fills a critical gap in Australia’s northern development architecture, delivering targeted, inclusive, and applied research and development that connects vision with outcomes, and institutions with communities

Australia/ Regional Development

These national agendas are deeply relevant to northern Australia and underscore the need for a dedicated institution to align R&D investment with these goals.

CRCNA’s cross portfolio reach:

Proposal

Centre for Developing Northern Australia

This proposal sets out the case for a permanent, northern-based institution to coordinate and invest in research and development that drives sustainable, inclusive, and resilient development across northern Australia.

Infrastructure and investment are critical enablers, but they must be supported by strategies that reflect the lived realities of the north Its remoteness, diverse communities, and complex environmental conditions call for development that is grounded in local knowledge, socially responsive, and innovation-led.

The CDNA can translate national policy into practical, region-specific solutions like:

1 2

Identify opportunities and barriers where targeted R&D and extension can improve productivity and community well-being.

Coordinate and fund research aligned with government priorities and local needs.

3 4

Support the application and adoption of innovation through strong partnerships with industry, First Nations organisations, and research institutions

Strengthen regional capacity, ensuring local knowledge and leadership guides development.

Importantly, the CDNA is not simply a research body, it’s a strategic platform designed to connect science with action, and investment with long-term impact

It’s mandate includes:

Strategic investment in R&D across key themes: First Nations enterprise, agriculture, aquaculture, water security, health, and education.

Extension and adoption, ensuring that knowledge and technology are translated into practical outcomes

Place-based planning, integrating social, environmental, and economic factors into development strategies.

The CDNA will be co-funded by the Australian Government and supported by state/territory governments, industry, philanthropy, and the research sector.

It will build on the strong foundation laid by the CRCNA, while expanding its scope to meet emerging priorities and deliver lasting value for northern Australia and the nation.

Northern Australia has unique ecosystems, cultures, and industries driving world-leading innovation. There are significant risks with not investing in research and development.

Learnings from the Cooperative Research Centre for Developing Northern Australia (CRCNA)

Since 2017, the CRCNA has delivered over eight years of targeted investment, innovation and regional collaboration. Its experience has generated valuable lessons that will shape the strategic priorities and operations of the CDNA.

1

Economic and social development are interdependent

True sustainability in northern Australia requires more than economic projects and physical infrastructure. The region’s unique geography and cultural landscape, particularly the presence and importance of First Nations communities, necessitate development that is inclusive, communityled, and tailored to local strengths and aspirations

Key insights include:

The importance of culturally appropriate health care access and outreach

The need for locally relevant education and training to grow regional workforce capacity

Investment in liveability infrastructure, from housing to digital connectivity, to improve wellbeing and retention.

Genuine partnerships with Aboriginal and Torres Strait Islander peoples, grounded in selfdetermination and cultural respect

Without strong social foundations, even the most ambitious economic or environmental strategies risk becoming unsustainable.

2 Regional expertise matters

R&D for northern Australia is most effective when conducted in the north, by institutions with a deep understanding of local conditions, cultures, and priorities Building northern research capacity is as important as producing new findings.

Strong ideas must be backed by data and evidence, not driven by sentiment or fragmented advocacy

3 Collaboration must be grounded in place

Solutions for the north were most successful when developed and implemented locally, by organisations with deep regional knowledge

First Nations engagement must start early. Involving Traditional Owner groups at the outset led to more effective, respectful, and sustainable project outcomes

4 Supply chains

and market access are critical

Developing new industries in the north requires early, deliberate efforts to understand supply chains, regulatory pathways, and market dynamics In many instances, targeted feasibility studies and data collection were essential to unlocking progress.

5 Partnerships must be broad and sustained

No single sector can address northern Australia’s development challenges al Long-term success depends on maintaining diverse, cross-sectoral relationships across industry, research government, and community. The CR demonstrated the value of convening trusted collaborations, an essential function the CDNA will continue and expand

6 People power progress

In the north, economic growth is only sustainable when it is embedded in strong, inclusive communities This requires a commitment to capacity building, placebased planning, and long-term partnerships with First Nations organisations and regional stakeholders.

Where capabilities were limited, impact was reduced – investments in skills and leadership must accompany any technical or scientific effort

7 Innovation needs extension to succeed

Distance and low population density can impede the uptake of research. Successful projects invested in bespoke extension, communication, and user engagement to translate knowledge into practice

A “publish and walk away” model is not viable in the north

These insights reinforce that the CDNA must be more than a funder, it must be a trusted enabler, convener, and catalyst for innovation-driven, inclusive development.

Purpose and role: CDNA

The CDNA will drive sustainable economic development across the region by investing in research, extension, and capacity-building initiatives that increase economic diversity and community resilience.

Strategic mandate

The CDNA will take a leadership role in planning, managing, and delivering R&D activities aligned with national, state and regional priorities.

It will:

Invest in high-impact research that addresses northern Australia’s unique social, environmental, and economic conditions

Promote the adoption of research outcomes through strong extension mechanisms.

Strengthen the capacity of regional industries, institutions, and communities, with a focus on First Nations self-determination and inclusion.

Enhance Australia’s overall economic productivity by leveraging the north’s unique potential

The CDNA will operate as a co-funded partnership between the Australian Government, state and territory governments, industry, philanthropy, and research institutions

It will coordinate investment, identify R&D priorities in collaboration with stakeholders, and ensure place-based impact that builds skills and capacity

Focus areas

The CDNA will target research and innovation to:

Boost SME growth and regional productivity

Support renewable energy and climate change adaptation

Advance First Nations economic participation and leadership

Enhance water security, food systems, and regional health outcomes.

Facilitate inclusive and evidencebased planning for land and infrastructure development.

The CDNA will respond directly to the north’s most pressing structural and emerging challenges – turning risk into opportunity through strategic, place-based research and innovation.

Responding to persistent and emerging challenges

Despite decades of development, northern Australia continues to face persistent structural barriers, including remoteness, climate volatility, and systemic disadvantage.

These challenges are compounded by emerging risks such as:

Increased frequency of natural hazards (floods, fires, cyclones).

Rising biosecurity and health threats

Economic vulnerability due to limited industry diversification

Fragile supply chains.

The CDNA will address these issues through strategic R&D investments that build resilience across systems and sectors

Legacy and opportunity

The CRCNA has demonstrated the value of targeted, collaborative research tailored to northern Australia

As the CRCNA approaches its wind-down in 2027, the CDNA offers an opportunity to sustain momentum, expand impact, and avoid fragmentation or “stop–start” development cycles

By embedding innovation within a coordinated governance and funding framework, the CDNA will ensure that northern Australia continues to grow as a region of national importance –economically, socially, and strategically

Principles of the CDNA

The CDNA will be underpinned by a clear set of principles that reflect its commitment to long-term, inclusive, and place-based development. These principles will guide investment decisions, partnership models, governance, and operations.

Vision

Todriveeconomicdiversity andresiliencethrough appliedresearch, developmentandextension.

Build on the legacy and knowledge developed by the CRCNA and other initiatives, including traditional and Indigenous knowledge systems Principles

Continuity

Inclusivity

Engage across sectors, disciplines, regions, and communities, with a strong focus on First Nations participation

Extension and adoption

Ensure research translates into realworld outcomes and adoption through tailored communication and engagement

Collaboration

Foster meaningful partnerships across government, industry, research, and communities

Science-based decision making

Ground all investments in evidence and best-practice science.

Mission

ACentrethatenables sustainableandinclusive developmentforthenorth, bythenorth.

Policy alignment

Align with Commonwealth, state, and territory development agendas and priorities

Transparency and good governance

Maintain clear, accountable decision-making processes.

Northern-led and northern-based

Ensure leadership and presence remain embedded in the region, supporting people, businesses and place

Sustainability and resilience

Prioritise long-term environmental, social, and economic resilience

Capacity building

Invest in local leadership, skills, and institutions to drive development from within

Productivity and innovation

Focus on boosting productivity through innovation, service delivery, technology, and diversification.

Place based regional planning

The CDNA will support place-based planning, helping regions pursue development aligned with local strengths and priorities, backed by strong science, knowledge and economic evaluation.

This approach acknowledges that no two communities or landscapes in the north are the same Social, environmental, cultural, and economic conditions vary widely across the region, and effective planning must reflect this complexity

The CDNA’s role

As an independent, expert institution, the CDNA will:

Support regional problem-owners (RDAs, local govt, industry, TO groups) with planning and facilitation informed by science, data, and traditional knowledge

Provide scenario analysis, spatial tools, and modelling to support informed decision-making

Build local capacity to participate in and lead development planning

Support cross-sector and crossjurisdictional coordination where development decisions span institutional boundaries

Offer advisory services or fee-forservice support for planning activities led by state or local governments, development authorities, or regional alliances.

By investing in knowledge and facilitation, not just infrastructure or programs, the CDNA will ensure that development across northern Australia is locally owned, data-informed, and outcomesdriven.

Focus areas for place-based planning

Optimise land and water use

Integrate economic development with environmental and cultural values.

Identify infrastructure and service delivery gaps

Support First Nations-led planning frameworks

Enhance climate resilience and disaster preparedness

Align regional aspirations with government investment strategies

First Nations, community, industry capacity local&
Prof Allan Dale, CRCNA Chief Scientist, The Northern Australia Development Synthesis Report, 2024

Research and development priorities for sustainable development

The CDNA’s research and development activities will be shaped by government priorities, industry needs, and community aspirations.

Drawing from the work of the CRCNA and broader national policy, key thematic areas help to drive innovation and deliver tangible benefits in regional growth, resilience, and liveability

These R&D priorities will be operationalised through an inclusive investment planning process, governed by the CDNA’s Board and informed by a network of partners

Collaborative projects

Partner with universities, research institutions, and industry leaders to develop cutting-edge solutions to development barriers.

Place-based

Facilitate inclusive planning and implementation with the best data and knowledge for economic, social and environmental decisionmaking based on science and facts.

Economic diversification

Foster SME development and support emerging industries in agriculture, aquaculture, and services

Infrastructure and systems integration

Strengthen regional supply chains, transport logistics, and digital connectivity, using inclusive, evidence-based planning methods

Capacity building and workforce development

Invest in education, training, and First Nations business development to build local capacity, attract and retain talent and reduce dependence on fly-in, fly-out workforces

Climate adaption

Promote innovation and localised responses to natural hazards, tropical diseases, water management pressures, tropical productions and the transition to clean energy.

Environmental stewardship

Support projects that protect, manage, and leverage the north’s unique environmental assets, like biodiversity, water systems, and carbon stores

Technology adoption

Promote the adoption of new technologies that enhance productivity, sustainability, and competitiveness

Knowledge transfer

Facilitate the extension of research findings and best practices to relevant stakeholders.

Promoting social inclusion

Creating partnerships and platforms that strengthen community networks and empower First Nations leadership.

The goal: to ensure that innovation is not only generated in the north, but applied for long-term benefit, economically, socially, and environmentally.

Identification of priority R&D investment

The CDNA will take a strategic, inclusive approach to identifying and investing in research and development priorities that align with the needs of northern Australia and the broader national agenda.

Strategic alignment

R&D investments will be guided by:

The Northern Australia Action Plan 2024–2029

Broader Commonwealth and state/Territory policy priorities

Input from regional stakeholders, including First Nations organisations, industry, research providers, and local communities

The CDNA will develop a rolling five-year Strategic Investment Plan, approved by the Board and submitted to the Minister and Northern Australia Ministerial Forum for endorsement.

Consultative planning process

The CDNA’s investment planning will be co-designed through:

Stakeholder workshops and targeted consultations.

Bilateral engagement with NAIF, RDAs, ONA, research institutions, and development agencies.

Integration of local, cultural, and sectoral insights to inform decision-making

The first investment plan will be independently reviewed after three years to enable timely recalibration and ensure relevance and impact A second five-year plan will then cover the remainder of the CDNA’s initial operating term.

Priority setting

The CDNA will:

Identify high-potential themes and sectors for investment

Prioritise projects with clear community, environmental, and economic benefits

Ensure funding is distributed equitably across geographies, industries, and demographic groups

Advocacy and engagement

To secure support and build consensus on investment priorities, the CDNA will:

Engage with stakeholders across all levels of government, industry, and community

Convene policy forums and collaborative workshops

Highlight the transformative potential of R&D through realworld case studies and data-driven impact

This inclusive and evidence-based approach ensures that CDNA investments remain targeted, transparent, and transformational.

Funding model: CDNA

A strong financial foundation is key to sustaining the CDNA's long-term impact. Building on the CRCNA model, its financial plan adopts a collaborative, longterm approach, uniting government, industry, philanthropy, and research to ensure certainty, shared commitment, and alignment with regional priorities.

The CDNA aims to become a permanent part of northern Australian architecture by building a strong pipeline toward NAIF investment and supporting the Office of Northern Australia with integrating complex policy issues across northern regions To sustain the institution’s small but core capacity, exploration of shared investment among northern Australian stakeholders is underway

1 Research & development investment

A Commonwealth investment of $100-$120 million over ten years is proposed as foundational funding.

This amount is consistent with the 2017 CRCNA funding of $75 million (adjusted by the Treasury inflation rate), and is essential to:

Maintain R&D momentum as the CRCNA winds down.

Expand focus into adoption, extension, and place-based planning

Bolster governance and operational capacity across the north

2 Expected co-investment

The Commonwealth investment will anchor a broader funding strategy expected to generate $330-$350 million in total investment over a decade.

Research providers

Matched contributions (e.g. universities, CSIRO): ~$100 million

State and territory governments ~$30 million for regionally relevant priorities

Industry partners

~$100 million of collaborative R&D funding.

Philanthropy and international Cost-recovery/profit-for-purpose basis.

Fee-for-service contracts For place-based planning and advice

~$230 million co-investment: states, industry, research, philanthropy

To note: These projections are based on the same level of output as the CRCNA - $75 million from 2017 to 2027 There is scope for additional research and development outputs under the CDNA model

3 High return on investment

According to CSIRO and the Australian Research Council data, every dollar invested in R&D returns over $3.30-$3.50 in economic benefit.

Early-stage research generates a return of 33x, while more applied, nearcommercial innovations can deliver returns of over 5x.

A $100 million investment could conservatively generate over $330 million in output, with additional social and environmental dividends

Leverage ratios:

Research institutions: 1:1 match (cash or in-kind).

Industry: up to 1:033 (dependent on project structure)

States/territories: negotiated agreements or project-level contributions.

4 Expense forecasting and overheads

Core operational costs (staff, travel, governance, communications) estimated at 15% of annual budget, scaling down over time

Industry and region-led R&D projects

Capacity building and extension.

Place-based planning and adoption activities.

5

Funding streams

The CDNA will draw on a diverse mix of funding sources:

Australian Government grants Via the CRCNA legacy, departmental R&D programs, and other federal initiatives

State and territory government agreements

Supporting region-specific priorities and co-investment

Industry contributions

Through direct funding, in-kind support, or matched investments in collaborative projects

University and research institution allocations

Aligned with strategic partnerships and project delivery

Philanthropic donations

Targeted at social, cultural, or environmental innovation

Fee-for-service planning and advisory work

Particularly for place-based planning projects commissioned by jurisdictions or development agencies.

International support

For globally relevant work on climate adaptation, Indigenous enterprise, tropical health and environmental resilience where the north is seen as world-leading.

6 Risk mitigation

A staged funding model with annual performance reviews, independent evaluation, and a five-year investment plan (endorsed by the Minister) will ensure transparency, accountability, and alignment with national priorities.

7 Monitoring and evaluation

The CDNA will use a framework for tracking progress, evaluating impact and involve regular reporting to partners and stakeholders.

Example key performance indicators could include:

Economic impact

Jobs created, startups incubated, industry partnerships, strengthened supply chains

Research excellence

Number of peer-reviewed publications, citations, research grants

Social inclusion

Indigenous-led projects, community engagement metrics.

Environmental outcomes

Climate adaptation solutions, sustainable practices adopted

Capacity building

Number of PhDs trained and other workforce development programs delivered.

Market and risk analysis

A successful CDNA must be grounded in a clear understanding of regional needs, market opportunities, and implementation risks. This section outlines the core market drivers and risk considerations that inform the CDNA’s strategic design.

Market and development context

Regional needs assessment

Northern Australia faces a unique combination of geographic, demographic, and structural challenges:

Low population density and high service delivery costs

Persistent infrastructure gaps (e.g. transport, health, digital connectivity).

Climate and environmental pressures.

Ongoing economic reliance on a narrow set of industries

The CDNA will tailor its investment to address these regional complexities, with a focus on place-based impact

Stakeholder landscape

Primary beneficiaries and collaborators include:

Regional SMEs and agricultural enterprises

First Nations organisations.

Local govts, RDAs, economic organisations, resource management, health networks

Research providers (eg universities, CSIRO)

Industry investors and financiers (e.g. NAIF).

Community-based development initiatives

Emerging industry trends

There is growing national and international demand for:

Clean energy solutions (e.g. hydrogen, solar, renewables).

Sustainable agriculture and aquaculture

Critical minerals essential to the global energy transition

Carbon farming and ecosystem services.

Indigenous-led economic models

Food security, water resilience, and regional and tropical health innovations

Increased adoption of diversified and integrated cropping and animal production

The CDNA is uniquely positioned to support these sectors through targeted R&D and partnerships

A core role of the CDNA will be ongoing horizon scanning to identify emerging risks, opportunities, and knowledge gaps.

By synthesising insights from across sectors, the CDNA will guide strategic investment in research and innovation,

ensuring northern industries and communities are well-positioned to adapt, thrive, and respond proactively to future challenges.

Risks of inaction

Without a funded successor to the CRCNA, several strategic risks emerge:

1

Fragmentation

Loss of coordination between government, industry, research, and communities, leading to inefficiency and duplication.

2

Decline in place-based R&D

Reduced investment in research tailored to northern conditions, especially in sectors like aquaculture, Indigenous enterprise, and water security

3

Weakened First Nations engagement

Loss of hard-earned trust and partnerships in Indigenous-led development

4

Productivity declines

Stalled development in innovative service delivery, industry resilience, climate adaptation, sustainable land use, and disaster resilience

5

Environmental and cultural oversights

Short-term projects risk neglecting long-term sustainability, leading to unintended consequences for Country and communities.

6

Health access and equity gaps

Remote communities may face health disparities and lack access to tailored medical research and innovation

7

Exposed sovereign risks

Increased exposure to risks in areas such as biosecurity, defence technologies, and infrastructure resilience.

8

Reduced investor confidence

Lack of a credible institution to de-risk investment may slow private sector participation.

The CDNA is designed to mitigate these risks by sustaining a trusted platform for collaborative, high-impact development

Its regionally embedded structure, cross-sectoral partnerships, and long-term funding model will provide continuity and confidence for all stakeholders.

Governance

The CDNA will operate as a not-for-profit company limited by guarantee, with a strong governance structure to ensure transparency, strategic alignment, and inclusive decision-making.

Legal and organisational structure

The CDNA will be established to serve a defined public benefit purpose

All earnings will be reinvested into R&D for the sustainable development of northern Australia.

A fit-for-purpose constitution will define internal governance arrangements, aligned with Corporations Act 2001 (Cth) obligations

Board structure and roles

An independent, skills-based Board will govern the CDNA Its responsibilities will include:

Strategic direction – setting the mission, goals, and long-term vision.

Financial oversight – approving budgets and ensuring sound financial management

Compliance and risk management – overseeing legal, regulatory, and operational risks.

Stakeholder engagement –representing the CDNA to government, industry, and community partners.

Executive oversight – appointing and supporting the CEO and senior management

Ethical leadership – ensuring integrity, transparency, and accountability

Transition from the CRCNA

The CRCNA will formally wind down by 30 June 2027

Intellectual property, organisational assets, and partnerships will transition to the CDNA where appropriate

Early appointment of a Chair, CEO, and key staff, preferably by late 2026, will allow for a seamless operational handover

Initiate discussions on establishing foundational members of the CDNA.

The Board will include expertise from: Industry sectors (e.g. agriculture, health, energy)

First Nations organisations

Research providers

State and Territory governments

An independent Chairperson will be appointed by the Commonwealth Minister in consultation with the Northern Australia Ministerial Forum. Board members will be publicly nominated and assessed by an independent panel The Board will appoint a CEO, who reports directly to it

Operational leadership

A team of skilled program managers will support delivery by:

Working directly with industry and research partners

Managing project delivery and investment timelines.

Supporting adoption pathways and reporting outcomes

Regional presence

Facilitating focused, place-based R&D that drives solutions and investment with regional and local partners.

Early estab funding w critical CRC expertise a relationshi

The CDNA will remain proudly northern-based, keeping its presence, leadership, and decisions grounded in the communities it serves.

Headquarters and offices

Co-located offices will be established or maintained in key northern centres including:

Townsville Cairns

Mackay/ Rockhampton

Darwin/ regional NT

Kununurra

Broome/ Karratha

Place-based delivery in action

Strengthen relationships with local industry, research, and government partners.

Enable staff to engage directly with community stakeholders

Support place-based planning and rapid translation of research into action.

By embedding the CDNA within regional ecosystems, it ensures work remains relevant, responsive, and locally informed

Delivery of results: operations and partnerships

The CDNA’s operational model is designed to ensure that research translates into real-world impact. This will be achieved through a combination of strategic planning, effective project delivery, and strong partnerships across sectors.

Day-to-day operations

The CDNA will operate through a lean and regionally embedded structure, supported by a skilled executive team and program managers.

Core responsibilities will include:

Strategic planning

Developing and managing fiveyear investment plans aligned with government and stakeholder priorities

Project management

Overseeing the selection, contracting, and monitoring of R&D projects

Extension and adoption

Supporting the uptake of research outcomes by end-users through tailored outreach, training, and communication

Performance tracking

Monitoring progress against KPIs and reporting outcomes to funders and stakeholders

Program managers will work closely with delivery partners to ensure that projects stay on schedule, meet agreed objectives, and demonstrate clear impact

Partner collaboration

The CDNA will work closely with a broad ecosystem of partners, including:

Members and stakeholders from industry, First Nations organisations, local governments, and communities.

Other Cooperative Research Centres and research development corporations (RDCs) to share lessons and leverage expertise

Government agencies at Commonwealth, state, and territory levels to align priorities and funding streams

NAIF, ONA, and RDAs to integrate R&D with infrastructure, policy, and planning investments.

Partnerships will be built on co-design, shared accountability, and mutual benefit, ensuring projects are grounded in real regional needs and positioned for adoption

By combining strong operational systems with deep regional engagement and national coordination, the CDNA will deliver results that are practical, inclusive, and enduring

Timeline and milestones

A 10-year investment horizon is essential to ensure continuity, build momentum, and deliver sustained outcomes across northern Australia. Short-term funding cycles do not match the complexity of regional development, particularly where coordination, trust-building, and long-term planning are required.

Continuity matters

The CRCNA has built strong networks, institutional trust, and a track record of delivering regionally relevant R&D.

Without a timely transition to the CDNA:

Critical research capacity may be lost through a “brain drain”.

Institutional knowledge and community trust could be eroded

Momentum around key policy, planning, and development efforts may stall.

To avoid this, the transition must be well-timed and well-managed.

Transition objectives

Ensure retention of regional expertise and existing partnerships.

Develop a detailed five-year investment plan, shaped through stakeholder engagement

Establish robust governance, reporting, and evaluation mechanisms.

Begin delivery of high-priority, regionally aligned projects in year two of operations

Flexibility with accountability

The CDNA’s operational plan will allow for adaptation to shifting policy, environmental, and economic contexts, while maintaining focus on long-term outcomes.

Independent evaluation points (eg after three years) will provide assurance and opportunities for recalibration

By investing over a full decade, the CDNA will be positioned to lead not just one-off research projects, but a lasting transformation in how northern Australia develops - driven by innovation, aligned with community needs, and resilient to future challenges

Key milestones

A clear and coordinated transition is essential to maintain momentum and avoid gaps between the CRCNA and the new CDNA This timeline outlines key milestones for establishment, including early funding decisions, executive appointments, and governance setup, ensuring the CDNA is fully operational by mid-2027 and ready to deliver from day one.

July - December 2026

Late 2025early 2026

Government decision on establishment funding

Enables transition planning and retention of expert staff

Chair, CEO & executive team appointed Drives strategic & operational setup

By 30 April 2027

2027 - 2028 Board appointed Allows time to establish governance & investment priorities

30 June 2027

Formal operations commence Ensures no gap between CRCNA wind-down and CDNA launch

First projects and planning initiatives begin Kick-off delivery phase under new structure.

Conclusion

Now is the time to turn vision into action by anchoring research and development at the heart of lasting progress across northern Australia.

The opportunity to shape a stronger, more resilient northern Australia is real, but only if met with timely, coordinated action.

Establishing the Centre for Developing Northern Australia (CDNA) builds on the proven CRCNA model and responds to the urgent need for long-term investment, regional leadership, and collaborative innovation.

With a place-based and inclusive approach, the CDNA will drive economic diversification, climate-smart growth, and deliver lasting social and cultural benefits across the north.

Sustainable development in northern Australia demands a long-term commitment to three core pillars:

Economic diversification and productivity

Social inclusion and First Nations empowerment.

Environmental stewardship and climate resilience.

The CRCNA laid a strong foundation, but with funding fully allocated and its term ending in June 2027, there is now a risk of losing critical momentum and hard-won regional trust

The CDNA will consolidate this progress by:

Being headquartered in the north to ensure regional leadership.

Operating under inclusive, skillsbased governance.

Translating research into realworld outcomes.

Aligning with national and jurisdictional priorities.

Delivering enduring value through innovation, capacity, and partnerships.

To unlock northern Australia’s full potential, the Australian Government, together with industry, philanthropy, and research partners, must commit to establishing the CDNA within the next 6 to 8 months

Appendices

Northern Australia quick facts

Referenced from the CRCNA Data Portal: crcnacomau/data-portal

Land and water

53% of Australia’s landmass, with 17 million hectares of arable soil

10,000km of coastline and Australia’s biosecurity frontline

78% of land is under First Nations interests

Northern Australia accounts for 60% of Australia's surface water runoff and 45% of Australia's potentially divertible water yield.

Economic

Northern Australia recorded Gross Regional Product of $279.8 billion in 2022.

In 2022, there were 111,320 businesses actively trading in northern Australia That’s 44% of the 253 million businesses nationally.

Within 5 flying hours of northern Australia there’s 400 million people to the north and 27 million people to the south.

Environmental

Between Broome and Cooktown lie over 60 major rivers and hundreds of streams, spanning 1 million km, forming the world’s highest density of intact tropical rivers, and carrying two-thirds of Australia’s freshwater.

11 tropical cyclones threaten the north annually with 4 to 5 reaching land

23 million feral pigs estimated to roam Cape York, damaging precious Country and waterways

People

13 million people

53% of national population

First Nations population over 200,000, 16% of northern Australia compared to 3.8% of national population.

Population is young and diverse, median age is 35-39 years with more females to males.

Health

Over half the northern population lives in outer regional areas, and 31% in remote or very remote regions.

Agriculture

8,059 agricultural businesses in the north, that’s 9.2% of the total 87,402 ag businesses nationally.

7,339 - northern Qld | 370 - NT | 350 - northern WA

183 million hectares of agricultural activity in the north, around 46% of the nations total ag area.

Australia has 6,500 native bush foods, but only 13 are marketcertified The $81 million industry is growing rapidly

Aquaculture

The north produces 20% of Australia’s aquaculture.

The industry grew from $223m and 520 jobs in 2017 to a projected $1.34b and 1,400 jobs by 2030.

Climate change in northern Australia Appendices

Climate change is already impacting northern Australia, with effects expected to intensify, posing growing risks to liveability, workforce stability, and productivity across key industries

Rising temperatures

Average temperatures have already increased by 1.5°C since 1910 across the Northern Territory

Under a high-emissions scenario, annual temperatures could rise by 20–25°C by mid-century, with some areas experiencing even more extreme heat.

The number of very hot days (>40°C) is projected to increase significantly – for example, from 7 to 43 days per year in Batchelor, NT.

Social and economic impacts

Remote communities, especially First Nations populations, face heightened vulnerability due to infrastructure gaps and cultural ties to land.

Health risks from heat stress, vector-borne diseases, and food insecurity are increasing.

Ecosystem and biodiversity stress

Climate change is placing pressure on savannas, wetlands, and coastal ecosystems, many of which are globally significant

Species migration, habitat loss, and invasive species are all on the rise

Shifting rainfall patterns

Wet season rainfall (Dec–Feb) has increased in areas, while dry season rainfall (Jun–Aug) has declined.

These shifts can disrupt agriculture, water security, and natural ecosystems.

Increased fire risk

The number of days with dangerous bushfire conditions has risen across nearly all of northern Australia

Hotter, drier conditions are expected to further elevate fire frequency and intensity.

Cyclones and extreme weather

Cyclone frequency is uncertain, but intensity is expected to rise, increasing destructive winds and storm surges.

Compound events, like heatwaves followed by flooding, are becoming more common.

The good news!

Northern Australia also holds enormous potential to lead in climate adaptation – from Indigenous-led land management to renewable energy innovation

Developing Northern Australia Centre for

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