After almost 18 years, Indigenous Affairs Minister and Northern Territory Senator Nigel Scullion has said it is time to retire.

Key points: Senator Scullion announced on Australia Day he would not contest the next election

Senator Scullion announced on Australia Day he would not contest the next election He has represented the Northern Territory for 17 years

He has represented the Northern Territory for 17 years Prime Minister Scott Morrison denied his departure — along with those of Michael Keenan and Kelly O'Dwyer — would hurt the Coalition's chances of winning the next election

And he had some words of warning for the game animals of the Top End.

"If I was a wild pig, a duck or a mud crab, I'd be starting to get nervous," Senator Scullion said.

"That's the only plan I've got: I'm going to eat more mud crabs, catch more barramundi, shoot more wild pigs. I have no plan beyond that, I'm retiring."

Senator Scullion told reporters in Darwin on Saturday he would not have completed another full term, and he wanted to be honest with the people who voted for him.

"It's time, that's about me," he said.

"Territorians want to know you're going to stay there for the full term, and so I've got a very honest compact with Territorians and I'm honouring that compact."

He said he would be making the same decision regardless of the outcome of the next federal election.

"If I was guaranteed to be the prime minister after the next election I'd still be retiring," he said.

He said he was confident the Coalition could win the next election, and warned Australians not to write them off.

Nigel Scullion poses with the NT's traditional owners after a meeting with the Northern Land Council. ( ABC News: Avani Dias )

Challenges for Indigenous Australians remain: Scullion

He said his greatest success during his five years as Indigenous Affairs Minister was improving the Government's working relationship with Indigenous people.

"You're not going to close a 200-year gap in five years," Senator Scullion said.

"But let me tell you what I am proud of, is the change in the nature of the relationship; we have a very close working relationship. We not only listen to what communities want, we do what communities want."

But he said all the challenges for Indigenous people remained, and much more needed to be done to improve educational outcomes, strengthen the economy and create more jobs for them.

The Northern Land Council said there had been a positive evolution of its relationship with Senator Scullion in recent years.

"Senator Scullion showed a willingness to consult with and listen to the views of Aboriginal people in our region, we wish him well for the future," chairman Samuel Bush-Blanasi said.

Nigel Scullion said he would continue working for Indigenous Australians. ( AAP: Dan Peled )

'So much unfinished business': McCarthy

Country Liberals Opposition Leader Gary Higgins thanked Senator Scullion for his service.

"He has been a tireless advocate on Territory issues and has been an energetic and passionate representative," he said in a statement on Saturday.

Labor senator for the Northern Territory, Malarndirri McCarthy, urged Senator Scullion to fulfil his promises to Indigenous Territorians before stepping down.

"It's quite disappointing because there is so much unfinished business," she said, calling on him to ensure $500 million allocated for housing was handed over from the Federal Government to the NT, that new houses be built in Borroloola, and that the Community Development Program — a work-for-the-dole-style arrangement for Indigenous people — be abolished.

"These are the things that the Senator must do now otherwise his legacy will forever be stained," Ms McCarthy said.

She slammed the Coalition Government for it's "very poor" relationship with Indigenous people.

"Clearly the portfolio of Indigenous Affairs had diminished under this Government, we've seen the reduction of billions of dollars in the Indigenous Affairs portfolio, we've seen the disempowerment of voices at the local level," she said.

"Even the Prime Minister's own Indigenous Advisory Council barely gets a look-in in terms of decisions, in particular around the commentary with the 26th of January."



She urged the CLP to preselect a candidate who would speak for the NT.

Prime Minister Scott Morrison rejected suggestions on Saturday that Senator Scullion — along with Human Services Minister Michael Keenan and Jobs Minister Kelly O'Dwyer — were abandoning a sinking ship.

"I don't think that's a very kind way to put it, and I don't think that really does respect the decisions they made," he told reporters in Canberra.

He also denied it would hurt the Coalition's chances of winning the next election, saying the resignations were about nothing more than the "personal circumstances" of each politician.

Malarndirri McCarthy slammed the Coalition's "very poor" relationship with Indigenous people. ( ABC News: Matt Roberts )

Scullion's political path unconventional

The buffalo-shooting, former mackerel fisherman Country Liberal Party senator, who sits with the Nationals in the Upper House, managed to maintain his Cabinet position during the reshuffling of three prime ministers during two tumultuous terms of Coalition government.

Prior to this, he spent a brief stint as community services minister in the Howard government before the election of Kevin Rudd in 2007.

"My path to public office wasn't a conventional one," Senator Scullion said in a statement.

"I was just an everyday fisherman and some-time buffalo shooter, and I raised my three beautiful children Sarah, Daniel and Luke on a fishing boat off the coast of Gove and North East Arnhem Land."

His knowledge of the Territory and Aboriginal life in remote communities kept him in good stead during a difficult and at-times controversial tenure as Indigenous Affairs Minister.

"I want to thank the Aboriginal and Torres Strait Islander people who have worked with me so closely," he said.

"They've informed me, helped me so much, not only understanding culture and country, but understanding better about policies and how we can work better together."

He said he would continue to serve as Minister for Indigenous Affairs until the results of the next election were known.

He said making the announcement on Australia Day gave the Government time to plan for his succession.

"It's just a day that has no particular consequence, it's Australia Day, why not?" he said.

When asked whether the next Indigenous Affairs Minister should be Indigenous, he said: "I'm not sure that matters, symbolically it may."

"There are plenty of Aboriginal people who have the capacity, I think, and the connections to be able to do that … I hope we have more and more Aboriginal and Torres Strait Islander people represented in federal parliament, local government, and state and territory governments."

NT Senator Nigel Scullion with CDP workers. ( Facebook: Nigel Scullion )

Mixed results on hallmark policies

Despite his extended period in politics, many of his hallmark Indigenous affairs policies and programs battled to gain serious headway.

Remote community school attendance rates continue to struggle, while Aboriginal work-for-the-dole programs are riddled with issues despite multiple revamps.

And Closing the Gap targets have made little ground since the policy's introduction by Kevin Rudd in 2008.

There were also complex issues such as the Blue Mud Bay sea rights case and the Uluru Statement of the Heart debate, which Senator Scullion will leave without having seen a conclusion.

Colour and controversy in the spotlight

Mr Scullion faced the scrutiny of the national media in 2016 when he said a child prison scandal at Don Dale Detention Centre in Darwin "hadn't piqued my interest".

He voted in favour of One Nation's "It's OK to be white" bill in 2018 before apologising and acknowledging it "downplays racism and historic injustices against Aboriginal and Torres Strait Islander Australians".

Ongoing controversy over the distribution of Indigenous Advancement Strategy funds was another lasting mark of his time in power.

A colourful character on the political landscape, the outgoing Minister was handcuffed to a stripper's pole in a Russian nightclub in 2007, which he told the ABC at the time was a "terrific" night out.

"Don't let anyone handcuff you to a post and make sure you always wear clean underwear," he said.

Relationship with strong leaders

Mr Scullion forged relationships with some of the nation's strongest Indigenous leaders including Galarrwuy Yunupingu, Noel Pearson and former Northern Land Council chief executive Joe Morrison.

Outgoing Indigenous Affairs Minister Nigel Scullion and Gumatj leader Galarrwuy Yunupingu. ( ABC News: Sara Everingham )

He helped facilitate township leases over a number of remote NT communities, including Mr Yunupingu's Gunyangara, in a bid to push for Aboriginal and Torres Strait Islander self-determination.

Mr Scullion was the first federal minister on the ground to assess the situation in Tennant Creek after the rape of a two-year-old girl last year.

His successor as Indigenous Affairs Minister will be unknown until after the next federal election.

Country Liberals president Ron Kelly said a CLP management committee meeting will take place in the next few days to determine the process to pre-select a new Senate candidate.

The management committee includes the president, the deputy president and six CLP members.

Mr Kelly said there were a number of good candidates, including young electrician Josh Burgoyne, who is second on the CLP Senate ticket.

Alice Springs town councillor Jacinta Price ruled herself out of the running.

"I am maintaining focus on the seat of Lingiari and I will not be considering running for the Senate. I made a commitment and am staying with my commitment," she said in a statement.

"I wish Nigel all the best in his retirement from politics and thank him for the support he has provided me and will continue to provide in the lead-up to the election."

On Friday in a Facebook post, former NT chief minister Adam Giles announced he would be stepping away from his program on Sky News to spend more time with his family.

"This will also allow me to better focus on other work opportunities that I am pursuing," he wrote, leading to speculation he would throw his hat in the ring as a contender for Senator Scullion's vacant seat.

But Mr Kelly said that was "speculation of other people" and that he "didn't see it happening".