Malarndirri McCarthy is the new Indigenous Affairs minister. She faces an extremely difficult task

Linda Burney, Minister for Indigenous Australians, announced her retirement from politics last week, and Labor has quickly appointed Northern Territory Senator Malarndirri McCarthy to take over the portfolio.

McCarthy comes into the position at a difficult time. Burney was a strong advocate for Indigenous rights, but her tenure as minister finished on a sour note.

The defeat of the Voice to Parliament proposal at last year’s referendum has increased disillusionment in Indigenous communities about the role of the federal government on key Indigenous issues. Since the referendum, Indigenous affairs have been largely absent from national politics.

Amid this lack of direction from Canberra, state and territory governments are making progress on issues such as Treaty, agreement-making, and establishing state advisory bodies. South Australia held elections for its First Nations Voice to Parliament in March.

There is declining interest from the public on Indigenous issues, which is at its lowest since 2021. This has implications for government and industry support for Indigenous policy and advancement more generally.

Declining voter turnout in remote Indigenous communities continues to be an issue for governments. This raises ongoing questions about how to increase Indigenous participation in democratic processes. After the referendum loss last year, turnout in upcoming elections is likely to decline further in the absence of some unheralded solution.

Territory issues, national significance

While these factors make the Indigenous affairs portfolio a daunting task at a national level, some of the most demanding cases exist in McCarthy’s own senate seat. The NT is where she will face her toughest challenges and critics while in the ministry.

With an NT general election set for the August 24 and a federal election scheduled for next year, Labor’s lead in both jurisdictions is being narrowed. The Country Liberal Party (CLP) and Territory Labor are polling closely just under month out from the NT election.

In 2016, the CLP lost government and was reduced to two members. In 2020, it improved on that result and finished with eight seats in the assembly. The CLP has also acquired double the election donations relative to Territory Labor for this election, which could prove to be vital in campaigning for remote seats.

Although this battle is at the territory level, this election result will be an indication of support for Labor’s Indigenous policies.

The most pressing issue for Indigenous people in the NT continues to be housing. In March, the Albanese government announced a $4 billon agreement with the territory government, land councils and the peak remote housing body. The commitment under this deal is to build 270 homes a year over ten years in remote communities in the NT. However, with current housing and skills shortages nationwide, it is a wonder whether this goal and timeframe is realistic.

There are other significant issues that might make McCarthy’s role difficult: Territory Labor’s support for fracking and lack of commitment to Treaty.

Fracking has been an important issue for Aboriginal Traditional Owners of the NT for some time. It’s only become more of a focus since the Territory Labor government gave approval to expand development in the Beetaloo Basin. Some Traditional Owners of the region are opposed to fracking, citing concerns about environmental degradation and climate change.

In 2018, the Territory Labor government signed a memorandum of understanding with the four NT land councils to commit to working towards treaty-making with Aboriginal people. A Treaty Commission was established and given funds to consult with Indigenous communities throughout the NT. However, in 2022, after submitting a report on the viability of Treaty, the Commission was disbanded. No further progress has been made on Treaty to date.