A business lobby group is calling on the Federal Government to consider abolishing income tax for people living in the Northern Territory while the region develops.

Australians for Northern Development and Economic Vision (ANDEV) was founded by mining magnate Gina Rinehart and is calling for a special economic zone for all of northern Australia.

ANDEV co-chair Imants Kins says the zone would have one management agency to administer state, federal and territory laws, and stamp duty and payroll taxes would be abolished.

"For example, in the Northern Territory, if the income tax was completely abolished for a certain period of time, it would have a minimal effect on the federal budget and create a significant spin-off in terms of new jobs and enterprises created in that area," he said.

Mr Kins says there are about 3,000 special economic zones around the world and Australia needs to have the vision to create its own.

"We could look at no taxation being paid by people living in the north, or companies that are investing and continue to invest in the north for a certain period of time," he said.

"That would lead to a significant long-term increase in revenues for government, but also jobs for our children and our grandchildren."

Mr Kins is a former executive chairman at Ochre Group Holdings Limited, a mining, oil and gas company, and a former director of ABM Resources NL, a Northern Territory exploration company.

On its website, ANDEV says Australia has long been "hamstrung by distant governments who don't understand the particular needs of northern Australia economies".

"If government gets out of the way, we can build a better future for north Australia."

Editor's note 29/5/14: This story has been amended to reflect the fact that Imants Kins was no longer a director of Ochre Group Holdings or ABM resources when he made the above comments.