The federal government's support for the NT government's remote Indigenous housing plan has been set at $550 million.
Federal Treasurer Scott Morrison confirmed the amount while announcing an extra $260 million in GST funding for the NT after the territory's share of GST revenue was cut.
Speaking to reporters, Mr Morrison rejected any linking of additional funding for the territory with its recent decision to lift the moratorium on fracking.
“Those two issues were not related," he said.
"We didn’t want to enter into any announcement that proceeded that because we didn’t want it to sway one way or the other."
However Mr Morrison said he welcomed the NT government's decision to open up gas extraction.
"Now they’ve made another to back in on remote Indigenous housing and I call a good thing when I see it as a good thing, so well done.”
The funding decision has been criticised by federal Labor.
In a joint statement, Shadow Assistant Minister for Indigenous Affairs Patrick Dodson and Shadow Housing Minister Doug Cameron, called the move "a slap in the face to Western Australia, Queensland and South Australia – who are still without a funding agreement for Indigenous housing".
They are calling for national agreement to combat the high rates of homelessness and over-crowding in Indigenous communities.
"Whether a person is on one side of the NT border or the other should not determine the level of Commonwealth funding available to provide them with housing."
The NT government had been asking the federal government to match its election promise of $1.1 billion over 10 years for remote housing.
"I have visited many remote communities in the territory... I have seen the degree of the challenge that's there," Mr Morrison said.
"We can reduce the overcrowding, improve the living conditions of Indigenous Australians, our First Australians. We are pleased to be able to deliver that."