THE federal Coalition will release policies to enable the development of "millions of acres" of land for agriculture in northern Australia.

That's according to Nationals Senator Barnaby Joyce.

However, a spokesman for Opposition Leader Tony Abbott would not confirm this.

Senator Joyce's comments follow the leaking of a draft discussion paper last week, which laid out Coalition ideas for developing northern Australia and tax-breaks to stimulate regional areas.

The draft discussion paper included suggestions about creating a northern economic zone, differential taxation and other infrastructure projects, as well as encouraging people to move north.

But since the leak, Mr Abbott distanced himself from the idea.

He did, however, suggest a potential Coalition policy could include a trial of increased personal tax rebates in some remote regions.

But Senator Joyce went further, this week saying "there is the potential to develop millions of acres" and that the Coalition's plans would "absolutely" include policies to enable further agricultural development.

"But what was wrong, in that leak, was that we plan to frog-march people to northern Queensland, or to chop millions from the aid budget; those things are not what we're planning," he said.

Senator Joyce said it was Coalition policy to provide "real (tax) incentives to encourage people, the doctors and nurses, to move to these (remote and regional) areas".

He rejected suggestions zonal taxation was unconstitutional.

He said it only become unconstitutional if it gave anyone a strategic advantage.

He said it would be difficult for Sydneysiders, with access to a huge number of services, to claim residence in remote, outback Tibooburra with access to few services but potential tax breaks.

When a spokesman for Mr Abbott was asked what plans were under consideration, he said the leaked document was a draft discussion paper only.

"A finalised discussion paper will be released in due course," the spokesman said.