Speaking in Darwin today, the Prime Minister put forward a separate economic zone plan and lower tax rates for Territory businesses.
"This will include introducing tax incentives with the object of reducing the corprate tax for northern territory based companies within five years," Mr Rudd said.
The Prime Minister says he's also keen to see the expansion of the Ord River scheme.
"This would unleash an enormous amount of agricultural land for the future and, economists tell us, $150 million worth of agricultural production," he said.
Labor's proposal would open up tens of thousands of land for agriculture nut it is reliant on successful Native Title negotiations.
"There have been discussions underway for some time between the Territory government and the Northern Land Council over this land [and] we would therefore work in partnership with these parties."
But the Opposition Leader says the Prime Minsiter's proposal is nothing new.
"In talking about nothern developmnent Mr Rudd is vindicating a position the Coalition has taken consistently and strongly for three years".
The Coalition has already promised to produce a 20-year plan for northern Australia involving investment, infrastructure, jobs and services for the region.