Independent Queensland MP Bob Katter supports a federal coalition proposal to move public servants' jobs to northern Australia and introduce special tax zones.
The Vision 2030 discussion paper floats the idea of tax incentives to lure workers to cities such as Darwin, Cairns and Karratha.
It also proposes relocating tens of thousands of public sector jobs from areas like western Sydney.
Opposition Leader Tony Abbott on Thursday told reporters the paper wasn't a policy but a draft being circulated to key people for feedback.
The leader of Katter's Australia Party said former coalition prime minister John Howard put a similar idea to cabinet years ago.
"The cabinet rejected that proposal ... Tony Abbott was in that cabinet," Mr Katter told reporters in Canberra.
"If Tony has had a fall off his horse to Damascus, I'll be the first to congratulate him."
Mr Katter said special zone allowances were vital to develop northern Australia.
He said he had moved to Mt Isa as a young man, attracted by a zone allowance.
Mr Katter said government departments should be relocated to the north.
"If you've got the people near the action ... they will give quicker response times," Mr Katter said.
"If the Liberal Party are fair dinkum about it, we'll be the first to back them."