A new federal–state pact will channel infrastructure funding into key growth areas, while reserving a large tranche of homes for first-time buyers.
The federal and Queensland state government have signed a $2.4 billion housing infrastructure agreement that will help unlock more than 51,000 new homes across the state, with over 20,000 reserved exclusively for first home buyers.
Under the agreement, the Commonwealth will provide $2 billion in support, combining $399 million in grants with $1.6 billion in zero‑interest concessional loans for “home‑unlocking” infrastructure such as roads, water, power, and sewerage.
The Queensland government will match the $399 million grant contribution.
The governments said the funding would deliver at least 51,000 homes in priority development areas, including Mount Peter near Cairns, Southern Thornlands in Redland, and the new Waraba community in Moreton Bay.
It also listed other yet‑to‑be‑announced growth areas, with the first homes for first home buyers expected to be completed by around mid‑2028.
Federal Housing Minister Clare O’Neil framed the deal as a direct boost to aspiring owner‑occupiers.
She said the agreement “meant tens of thousands more homes for Queenslanders to buy – with no competition from investors”, adding that “we’re investing in the boring but essential infrastructure like roads and sewerage that help us unlock more homes.”
Treasurer Jim Chalmers linked the package to the broader national struggle to lift home ownership in a high‑price and elevated‑rate environment.
“We know it’s too hard for too many Australians to buy their own home and get ahead and that’s why we’re investing in building more homes, making our tax system fairer and putting first home buyers ahead of foreign investors,” he said.
The federal government pitched the agreement as a key step towards delivering its election commitment to help build 100,000 homes for first home buyers in partnership with the states and industry, as part of its National Housing Accord target of 1.2 million homes over five years.
Queensland Deputy Premier Jarrod Bleijie said the arrangement showed that the state government was prepared to use its planning and infrastructure levers to open up land quickly.
“More homes across Queensland are needed and fast, and a key way the Crisafulli Government can play its part is to unlock land and deliver supply,” he said.
Builders welcome deal but warn on tax settings
Industry has broadly backed the agreement, while warning that other budget decisions risked undermining project viability over the medium term.
Master Builders Australia acting CEO Melissa Byrne said: “This investment in enabling infrastructure is welcome and is an example of where housing policy efforts should be focused.”
However, Byrne cautioned that parts of the federal budget risked damaging federal housing targets due to reducing the after‑tax returns that underpinned many large-scale housing projects, particularly in the multi‑unit and build‑to‑rent space.
In her view, changes to investment tax settings could offset some of the benefits of the infrastructure pipeline by denting investor appetite.
“The Federal Government’s Budget announcements, stripping away the investment settings that make projects viable, are not conducive to increased housing supply. Investors finance up to two in every five new homes built, making them a critical part of the supply equation,” she said.
[Related: Tasmania–Commonwealth deal earmarks new homes for FHBs]
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