PM abandoning GST fight: NT

The Northern Territory's chief minister has accused Prime Minister Malcolm Turnbull of walking away from a fight on the GST.

Adam Giles had previously invited his state and territory counterparts to a tax summit in Darwin next month to discuss the issue of raising the GST.

However, he said on Monday it probably wasn't necessary given that Mr Turnbull had indicated he will not pursue the tax increase.

"I find it very interesting that the prime minister was bursting for a fight with the states and territories and at the first hurdle he's walked away from that fight," he said.

"But I do know that states and territories need to fix their black holes, particularly when it comes to health funding into the future."

He said the federal government had suggested that increased renal health funding might come from the GST but that now remained to be seen.

He has previously opposed a rise in the GST but when asked if he now wanted an increase, Mr Giles said: "That's your words ... what I want to see is increased levels of funding for health in the NT."

He questioned why the federal health department had thousands of staff when it does not run a hospital and suggested there were savings to be made federally so funds could be funnelled to states and territories.

"We have a looming health budget problem coming down the barrel" and wanted to discuss solutions with the Commonwealth, he said.