Darwin Homeless Shelter Closes Sunday: 120 First Nations Residents Face Relocation

Darwin’s largest homeless shelter closes its doors on Sunday, October 11, displacing 120 vulnerable First Nations residents. The Northern Territory government rejected a A$6.5 million federal funding offer this week to purchase the facility’s demountable buildings from private owner AUSCO Modular. Residents will be relocated 100 kilometres away to Batchelor, a small town with limited services. The closure ends three years of operation at the Yilli short-stay accommodation complex.

Why the NT government rejected the federal rescue offer

Federal Minister for Indigenous Australians Malarndirri McCarthy offered A$6.5 million to purchase the demountable buildings under the condition that Yilli Rreung Housing Aboriginal Corporation continue as service provider. The NT government refused, with Chief Minister Lia Finocchiaro calling the funding a “waste of taxpayers’ hard-earned money” last month. McCarthy said the offer “still remains on the table” and was “fair and very reasonable” to help families through the wet season.

Who lives at YiSSA and where they will go

At its height, the facility housed almost 400 First Nations people, including women and children escaping domestic violence and people visiting from remote communities for medical treatment. The remaining 120 residents will be relocated 100 kilometres away to Batchelor. Fiona Dhawunymurruwuy, a 52-year-old bilingual teacher from Millingimbi, has lived at YiSSA since April last year after a failing kidney forced her to leave Arnhem Land. She described the facility as a community where “people know each other, people communicate, it’s a nice place to live.”

The closure timeline and government decision

The NT government informed Yilli Housing in July they had until October 11 to vacate all residents. The facility was set to close after the Northern Territory government failed to renegotiate a five-year lease with the private owner. Minister McCarthy confirmed the NT Government rejected the offer because it was run by an Aboriginal corporation, according to reports on October 9.

Final Thoughts

The closure of YiSSA removes a critical support service for vulnerable First Nations people in Darwin. With the federal rescue offer rejected and relocation to a remote town imminent, residents face uncertain access to medical treatment, domestic violence support, and community services. The decision reflects a breakdown in cooperation between state and federal governments on Indigenous housing.

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