NORTHERN Australia could draw millions of foreign visitors a year to major cities built at Darwin, Cairns, Townsville and Karratha under Coalition policies released today.

And the Coalition has not ruled out relocation incentives such as income tax cuts to lure people north, even though the proposal was ridiculed when canvassed in a leaked draft in February.

A Coalition government also would look at moving Commonwealth departments such as the CSIRO and the quarantine service from southern capitals to the north.

It hopes its measures will be approved by champions of the north such as mining billionaire Gina Rinehart who has demanded governments come up with "bold and imaginative plans".

If Tony Abbott became Prime Minister he would set out to pack infrastructure, jobs and services into the underpopulated north of the continent and turn it into an entry portal for Asian business and trade.

In addition the breadth of the nation from the Coral Sea to the Indian Ocean could see oil and gas exports adding $150 billion to the economy with a major focus on clean and efficient energy.

The Coalition's strategy includes development of a "food bowl" featuring premium produce to double agricultural output, and resorts which would attract two million international tourists a year.

A Coalition government would not finalise its full plans for "the next frontier" until delivery of a white paper covering all major options.

The options will include a high-powered planning body made up of the Prime Minister, the Premiers of Queensland and Western Australia and the Chief Minister of the Northern Territory.

The north's population would be substantially increased and the white paper would consider the special tax zones with lower personal and business taxes for those who relocate there.

A Coalition government also would look at providing a water project development fund to pay for dams and other measures to retain and distribute water in the area.

"A Coalition government will put in place the policies and plans to develop Northern Australia's potential with more investment, infrastructure, jobs and services," said Mr Abbott before launching the policy in Townsville.

"No longer will Northern Australia be seen as the last frontier: it is, in fact, the next frontier."

He said: "We want to capitalise on Northern Australia's existing strengths and natural advantages in agriculture, cattle, and energy as well as to seize opportunities in tourism, education and health services."

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