The NT Government hopes to have finalised the teacher rental subsidy dispute by the end of this term.
Education Minister Selena Uibo says she remains hopeful Katherine teachers won't follow through with their earlier threats of leaving the town over the issue.
Ms Uibo was at Katherine High School today to welcome students back for their third term.
She said the Education Department was continuing its high level review of the subsidies.
The NT Government announced in April it planned to do away with a portion of the rental subsidies paid in Katherine.
The government says $500,000 will be saved from almost $2 million paid in subsidies to help rescue the NT's ailing Budget.
Of about 300 education staff in Katherine, the department "was looking at" 94 education staff who receive the subsidy, or about a third.
"There are anomalies in this subsidy which is an incentive which was established nearly 30 years ago in the 1990s to attract teachers and education staff in Katherine," Ms Uibo said.
She said three models for the new subsidy scheme had been developed for Katherine.
There would be new criteria for how the subsidy was applied as well, she said.
Ms Uibo said it was hope the review would be complete by the end of term three.
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