Tony Abbott has played down a Coalition idea of dividing the nation into two different tax zones.

TONY Abbott will take to the election a radical plan to reshape Australia by splitting it into different personal tax zones and forcibly shifting tens of thousands of jobs to the Top End.

The secret draft economic policy document, entitled Vision 2030, also proposes to carve $800 million from the foreign aid budget to be diverted to a mega-project in northern Australia.

In an embarrassing high-level leak to The Daily Telegraph, the 30-page document outlines plans for the mass migration of public service workers to north of the Tropic of Capricorn to Karratha, about 1500km north of Perth, Darwin and Cairns.

CLICK HERE TO READ THE LEAKED DRAFT PLAN

While not specifying which southern state capital cities would be targeted for relocation of government departments, western Sydney would be expected to be a major source of the new northern workforce, with 22,000 public sector jobs in the region alone.



Personal income tax incentives are also proposed to lure private sector workers north of the border, while major defence facilities would also be relocated.

The draft policy has been circulated among senior levels of the Coalition and was sent to state and territory premiers three weeks ago.

It qualifies the document by claiming it is not "definitive or comprehensive" but seeks input from the states.

The detailed but un-costed economic plan reveals the Opposition Leader's plans to split the country in half, and create a new food bowl and energy industry economy above the 20 degree south parallel.

But the document admits the Coalition would have to redraft its current immigration policies, foreign investment rules and personal tax laws, and relocate a range of government departments, to realise the dream.

It also includes an audit for a 15-year infrastructure plan for new highways and rail projects through the desert, dams in the tropics and new education facilities to cope with the expected population boom.

To power the new economy, the Coalition proposes to invest in clean energy projects in Papua New Guinea, "leveraged" through the Coalition's direct action climate change policy, to deliver "energy needs across northern Australia and into the national electricity market".

Despite promises to not cut the foreign aid budget, the document reveals $800 million in foreign aid would be redirected to build a tropical health medical centre in far-north Queensland. The document says: "The Coalition would, in its first term, propose to look to develop key urban zones - Darwin, Cairns/Townsville and Karratha - with the aim of substantially increasing the population in these areas.

"In conjunction, the current immigration policy, relocation incentives and personal tax incentives should be reviewed, along with the planning of economic zones centred around these urban areas.

"Relocate substantial and relevant components of federal departments and commonwealth agencies, such as the CSIRO, to key urban zones in northern Australia."

A letter also obtained by The Daily Telegraph - signed by Opposition finance spokesman Andrew Robb, dated January 15, 2013, and sent to state and territory premiers - confirmed that the Coalition planned to reveal the policy Developing Northern Australia - a 2030 Vision in the early part of this year.

Parts of the plan, however, may be unconstitutional, with federal governments prohibited under section 51 of the Constitution from discriminating against states on the basis of income tax.

The plan calls for an increase in overseas migration to the region and an increase to overseas work visas.s, and a redirection of government grants and aid funds to help develop the plan.