Changes will be made to the Charles Darwin University Act 2003 and Batchelor Institute for Indigenous Tertiary Education Act 1999 aimed at strengthening oversight.
Accountability will be improved in the new NT Government/CDU Partnership Agreement.
Reforms are focused on improved student outcomes.
The Finocchiaro CLP Government will bring forward legislative reforms and a strengthened partnership agreement targeted at improving governance and student outcomes at Charles Darwin University (CDU) and the Batchelor Institute for Indigenous Tertiary Education (BIITE).
To ensure taxpayer funds are being used most effectively, new key performance indicators will be included in the NT Government/CDU partnership agreement focused on getting better outcomes for the Territory's budding apprentices and trainees.
This action follows the carpentry bungle in February and yet more recent revelations students missed a unit of competency in the Electrotechnology field.
Minister for Education and Training, Jo Hersey, said the new CDU partnership agreement will seek to align CDU's training priorities with the needs of the Northern Territory as the Finocchiaro CLP Government looks to improve workforce and rebuild the economy.
"In our year of growth, certainty and security, I am bringing forward these changes to end the frustration and unnecessary costs in time and money students and their families have been caught up in," Minister Hersey said.
"We must have accountability for Territorian's money invested into our training providers to make sure that we maximise outcomes.
"In order to grow the economy, we need strong training providers to give Territorians the best training for their chosen pathways, and we will use the renegotiating of a new agreement to build a strong relationship with CDU.
"The new agreement will have KPI's for outcomes, rather than untied funding without KPI's.
"If KPIs are not met I will look to divert resources to other training providers - it's just too critical that we get this right.
"Work on legislative amendments has begun and I will work with the sector with a view to it being introduced into NT Parliament in early 2027."