This audit assesses the effectiveness of the implementation of the National Partnership Agreement on Remote Indigenous Housing in the Northern Territory from the perspective of the Australian Government.

The need to improve the social and economic outcomes of Indigenous Australians was widely recognised in 2007, when the Council of Australian Governments (COAG) agreed to a partnership between all levels of government to work with Indigenous communities to close the gap on Indigenous disadvantage. The resultant National Indigenous Reform Agreement committed the Australian, state and territory governments to significantly increased activity in seven key areas to reduce Indigenous disadvantage. The seven areas, referred to as building blocks, are: early childhood; schooling; health; economic participation; healthy homes; safe communities; and governance and leadership.

In developing the National Indigenous Reform Agreement, COAG has emphasised that action in one of the building blocks can influence progress in another. In this respect, improved housing has been identified by COAG as being able to make positive contributions to life expectancy, education and employment outcomes and reduced infant mortality. Housing need in remote Indigenous communities was considered to be at critical levels, with many houses overcrowded and in very poor condition. In response, COAG endorsed the National Partnership Agreement on Remote Indigenous Housing (NPARIH) in November 2008.