Queensland-based Federal M-P Bob Katter says he is pleased to see the Coalition talking about tax breaks for northern Australia.
A Federal Coalition discussion paper raises the prospect of personal tax incentives to encourage population growth in centres such as Cairns, Townsville, Darwin and Karratha.
Opposition Leader Tony Abbott says people in different parts of the country would not be taxed differently under a Coalition government.
But Mr Katter says people in remote northern parts should get tax breaks.
"A hundred dollars in Normanton will only buy you 60 dollars worth of goods in Brisbane," he said.
"I mean things are so much more expensive in the rural towns of Australia, and that goes for all of the fringe towns around Cairns and all of the towns at the back and around Townsville as well." Business and economic development groups in Cairns have long called for local tax incentives and more public service jobs in the city.
'Exciting' Cairns Chamber of Commerce chief executive Deb Hancock says the Coalition draft is exciting.
"Even if it isn't policy, that's fine, we understand that it needs to go through due process and due diligence," she said.
"But this demonstrates that there is appetite for the things that organisations across Cairns have been asking for for quite some time." Mount Isa Mayor and former State Labor MP Tony McGrady has also welcomed the draft plan.
He says it is something he has long argued for - because remote northern centres are being denuded of people, and fly-in fly-out work practices are not helping.
"It's important for people to live in the remote parts, it is important for governments to participate in making these centres liveable places," he said.
"To have this matter on the political agenda, I welcome it.
"I would much prefer Mr Abbott to say this will be part of Coalition policy, rather than simply say, 'we are giving consideration to it'." Unintended effects Social analyst David Chalke says while tax incentives in the north could work, the Tropic of Capricorn is not a good cut off point.
He says there may be some unintended local effects.
"Suddenly Gladstone's empty and everybody's moved up the road into Rocky," he said.
"Tropic of Capricorn is not a fixed line.
It's based on where the sun is directly overhead at the winter solstice and it's moving north at 15 metres a year and the border moves up."