Queensland, Federal Governments invest A$2.4bn in housing infrastructure
Sydney (18 May)
Queensland’s government and the Federal Government will invest A$2.4 billion into infrastructure projects to support 51,000 new homes in growth areas, the Queensland Government said on 18 May.
The Federal Government has agreed to invest A$2 billion into Queensland, and the state's government has agreed to cover the remaining A$399 million.
The two governments will support infrastructure projects, including road and sewage upgrades, to enable new housing developments, the Queensland Government said.
Developers expect to complete homes linked to the investments from mid-2028, the Government said. They will sell more than 20,000 homes linked to the investments to first-home buyers, according to the Government.
“We’re investing in the boring but essential infrastructure like roads and sewerage that help us unlock more homes for Queenslanders,” Federal Housing Minister Clare O’Neil said. “Thanks to this agreement we’ve reached, there will be thousands more Queenslanders getting the keys to their own home,” O’Neil added.
The Housing Industry Association (HIA) has backed the investment deal because it could speed up housing development times. “Builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more timely fashion,” HIA Managing Director Jocelyn Martin said.
Master Builders has also welcomed the new investment, but raised concerns over ongoing construction workforce supply issues. “We … call on both levels of government to deliver targeted investment to close the workforce [supply] gap to boost productivity and deliver housing safely, sooner, and more affordably,” Master Builders Queensland Deputy CEO Michael Hopkins said.
Master Builders wants the Queensland Government to create a rebate on first-year apprentice wages, expand its Small Business Apprenticeship pilot scheme, and expand its Apprenticeships for Over 25s scheme in its upcoming 2026 Budget, it said on 13 May.
Demand for trades workers from public infrastructure developers in Queensland is expected to exceed supply by 14,300 workers in May, according to Infrastructure Australia forecasts. The state’s trades worker shortage is expected to peak at 35,500 workers in June 2027, before falling because of reduced demand.
Other Australian states also face construction workforce shortages. Nationally, public infrastructure demand for trades workers will exceed supply by 78,500 workers in May 2026 and 123,100 workers in June 2027, Infrastructure Australia forecasts show.
Queensland’s deal with the Federal Government comes weeks after the Western Australian (WA) and Federal Governments agreed to co-invest A$2 billion into housing and housing-related infrastructure projects.
WA’s deal includes infrastructure project funding and multiple low-cost financing schemes for developers and first-home buyers. It will support 34,000 new dwellings, including 11,000 units for first-home buyers, the WA and Federal Governments said.
Australian state and federal governments plan to increase the country’s total housing supply by 1.2 million homes by 2029, from 2024 levels, through the National Housing Accord.
By Avinash Govind