While not final, the decision could affect up to one third of teachers here in town.

In a move to help balance the Territory's budget, the NT Government wants to cut $500,000 from the rental subsidies.

AEU Northern Territory Branch President Jarvis Ryan said he is very concerned cuts to the subsidy could lead to a teacher exodus which has the potential to cause a "very damaging knock on effect on education in the town".

"We understand a final decision hasn't been made so we are making very strong representations to the government and the Department of Education not to go ahead with cuts to the subsidy.

"We believe if savings have to be made we should have a full discussion to find out if there are ways to make those savings without negatively impacting the financial position of teachers and their families."

Almost 100 educators met on Saturday as part of the Australian Education Union NT Branch's annual Conference to discuss education issues relevant to the Territory.

Mr Ryan said the union is urging the NT Government to not make hasty decisions and understand there are other ways to find savings which don't impact on the financial well being of teachers and their families.

"It would be cutting your nose off despite your face to say we are trying to save half a million dollars in subsidies but it leads to a large number of teachers leaving Katherine," Mr Ryan said.

"You then have to spend large amounts of money on recruitment. Relocating teachers, recruiting them from interstate, there goes many of your savings."

Education Minister Selena Uibo attended the meeting to discuss the government's saving measures in place to fix the NT budget.

She was also on hand to field questions from teachers affected by the cuts.

"Can you please clarify the reasoning behind the recent decision by cabinet that arguably will have a detrimental affect which will financially far exceed the savings on the region of Katherine to remove the housing subsidies, and why this announcement was made on the first day of the school holidays when most of the impacted staff were on a well deserved break," one teacher asked.

Ms Uibo acknowledged the NT is facing financial difficulties saying "we can not continue on a business as usual basis".

"Every department in our government has been asked to look at savings. And yes, some of the saving measures are going to impact on some of you (teachers).

"I want to be very, very clear, in my role as Minister for Education if I have to make a decision between investing directly in schools and continuing ad hoc entitlements, I am going to choose schools every time," Ms Uibo said.

She said changes to employee entitlements will not be immediate.

"From the beginning of term two this year all employees in Katherine who currently receive the housing subsidy will be individually contacted to discuss the next steps in the review process."

According to the minister, the housing subsidy, introduced in the 90s, is currently under review for the first time.

Last year, the Northern Territory Government commissioned former West Australian under Treasurer John Langoulant to "provide a report that paves a way forward for responsible budget repair."

"What we are looking at is how (housing subsidy) money is being spent and who is actually receiving it," Ms Uibo said.

"There has been no cost benefit analysis at all done into the subsidies received here in Katherine, that is why the review process is so important."

"We simply don't have all the data and all the information at our fingertips."

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