Industry bodies welcome the joint housing infrastructure deal, calling for swift on-site action and broader policy reform
The Commonwealth and Queensland governments have struck a deal to fund the delivery of more than 51,000 new homes across Queensland, with over 20,000 reserved for first-home buyers.
The agreement provides $2 billion in Commonwealth support, comprising $399 million in grants and $1.6 billion in zero-interest concessional loans for enabling infrastructure such as roads, water and sewerage. The Queensland Government has matched the grant component with a further $399 million contribution.
The deal is the latest in a series of similar agreements between the Albanese government and state governments. Earlier this year, the Commonwealth signed comparable arrangements to enable 4,000 new homes in Tasmania and more than 34,000 in Western Australia.
Housing minister Clare O'Neil said the Queensland agreement would open up tens of thousands of homes to residents "with no competition from investors."
"We're investing in the boring but essential infrastructure like roads and sewerage that help us unlock more homes for Queenslanders, because the more homes we build, the more affordable housing becomes," O'Neil said.
The Property Council of Australia welcomed the move and noted that directing funds towards priority development Aareas — including Mount Peter, Southern Thornlands and Waraba — reflects Queensland's pace of growth.
"This announcement is a timely reminder that when state and federal governments work together on the biggest challenge facing our country, that is getting more homes built, faster, real progress is possible," said Jess Caire (pictured right), executive director at Property Council Queensland.
"The key now is to get on site quickly to start delivering the infrastructure that makes those homes possible roads, water and essential services so more Queenslanders can get a place to call home.
"Investment in critical growth fronts through enabling infrastructure like roads, water and sewerage is what unlocks new housing supply in the places that need it. It's pleasing to see this announcement recognise that and back it in."
Master Builders Queensland also highlighted the particular significance of infrastructure spending across the identified growth areas.
"The infrastructure investment, including roads and sewerage at Mount Peter, Southern Thornlands and Waraba, as well as other potential growth areas, is especially important to unlocking new housing supply in Queensland," said Michael Hopkins, deputy chief executive officer at Master Builders Queensland. "It complements reforms recommended by the Queensland Productivity Commission, including cutting red tape, reforming the QBCC, and boosting the construction workforce."
Master Builders Australia similarly backed the announcement, though one of its executives called for more comprehensive policy action.
"This investment in enabling infrastructure is welcome and is an example of where housing policy efforts should be focused," said Melissa Byrne, acting chief executive of Master Builders Australia.
"Master Builders has continued to reiterate that increasing housing supply will increase affordability. Making projects 'shovel ready' is part of the puzzle. 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. Australia needs to see a material uplift in supply and governments at all levels must focus on policies that encourage investment, improve efficiency, cut unnecessary red tape and grow the construction workforce while delivering enabling infrastructure."
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