This article compares the two most significant paradigm shifts in the administration of Aboriginal affairs in Australia's Northern Territory. The Welfare Ordinance 1953 (NT) constituted a then-unique attempt to reclassify the diminished legal status of most indigenous Territorians as justified not by their racial heritage but by their level of social need, while the 2007 legislation behind the “Northern Territory intervention” has jettisoned formal racial neutrality through a campaign to curb the breakdown of “community standards and parenting behaviours” in many remote indigenous communities. The authors argue that while both initiatives had similar fundamental aims—encouraging remote Aboriginal people to adopt social habits generally evident in non-indigenous society—the decision to jettison racial neutrality has ushered in a new era of race relations in Australia, in which race has openly and formally been reestablished as a marker of legal inferiority.