Australia is set to get its first radioactive waste dump with the government agreeing to a Coalition demand for $10 million for the Northern Territory, which will host the dump.

Energy Minister Martin Ferguson told ABC radio's PM program yesterday that the government would agree to a demand from Northern Territory Nationals Senator Nigel Scullion for the $10 million fund for education, health and infrastructure, ensuring the passage of the legislation through the Senate.

The preferred site is Muckaty Station, near Tennant Creek. The dump will take medical waste and reprocessed fuel rods from the Lucas Heights reactor.