The Queensland Government has released updated guidelines for Round 2 of its $2 billion Residential Activation Fund, setting the stage for a further $500 million investment aimed at unlocking land and accelerating new housing supply across the state.
Applications for the next funding round are expected to open in the coming weeks. The fund is designed to support the delivery of trunk and essential infrastructure including water, sewerage, roads and power, often cited as key bottlenecks preventing residential developments from progressing.
The announcement marks the next phase of the Crisafulli Government’s broader housing strategy, known as the Securing Our Housing Foundations Plan, which seeks to address supply constraints through targeted infrastructure investment.
A Focus on Unlocking Land
Infrastructure provision has long been recognised as one of the major barriers to new housing supply. While development approvals may be in place, projects can stall if local councils or developers lack the capital to deliver trunk infrastructure.
The Residential Activation Fund aims to address this gap by co-funding projects that are considered “shovel-ready” and capable of delivering new residential lots or dwellings within defined timeframes.
According to the Government, the first round of funding in 2025 allocated nearly $1 billion towards infrastructure projects across Queensland. Those projects are expected to unlock land for more than 98,000 homes.
Round 2 will distribute an additional $500 million, continuing the fund’s objective of accelerating housing development by removing infrastructure constraints.
Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the new round builds on the initial tranche of funding and encourages councils and industry stakeholders to begin preparing applications.
“Our $2 billion Residential Activation Fund provides support for trunk and essential infrastructure projects that are shovel-ready, accelerating new developments so more Queenslanders have a place to call home,” Mr Bleijie said.
He stated that the government has already committed close to $1 billion in infrastructure funding and that Round 2 would further support the fast-tracking of residential development.
Regional Allocation Requirement
One notable feature of Round 2 is the continued emphasis on regional Queensland. The updated guidelines specify that at least 50 per cent of the available funding will be allocated to projects located in regional areas.
This allocation requirement reflects broader state planning priorities, including population decentralisation, economic development outside metropolitan centres, and addressing regional housing shortages.
In many regional communities, land may be available but infrastructure funding remains a significant barrier. By directing a substantial portion of the fund towards regional projects, the Government aims to stimulate housing supply and economic activity beyond South East Queensland.
Industry stakeholders in regional councils are now reviewing the eligibility requirements to assess whether existing approved developments may qualify for funding support.
Eligibility and Application Requirements
The newly released guidelines provide detailed information on eligibility criteria and application requirements for both local councils and industry participants.
While final application forms are yet to open, projects must generally demonstrate that they are:
• Shovel-ready or close to commencement
• Capable of delivering measurable housing outcomes
• Dependent on trunk or essential infrastructure funding
• Aligned with state planning objectives
Eligible infrastructure categories include water supply, sewerage networks, transport connections, electrical upgrades and other enabling works that facilitate residential development.
The emphasis on shovel-ready projects suggests that the Government is seeking developments that can move quickly from funding approval to construction, thereby accelerating the timeline for new housing supply.
Councils are expected to play a central role in submitting applications, either independently or in partnership with private developers.
Broader Housing Context
The release of Round 2 guidelines occurs against a backdrop of sustained housing demand and affordability pressures across Queensland.
Population growth, interstate migration and limited supply have contributed to rising prices and tight rental markets in both metropolitan and regional centres.
Infrastructure funding is often cited by industry bodies as one of the key levers governments can use to increase supply in the short to medium term. Without sufficient trunk infrastructure, approved developments can remain dormant for years.
The Residential Activation Fund attempts to intervene at this critical stage, providing financial assistance to overcome upfront infrastructure costs that might otherwise delay development.
Whether infrastructure funding alone can significantly shift overall housing affordability remains subject to debate. However, accelerating the delivery of approved land is widely regarded as an essential component of broader housing reform.
Industry Response and Preparation
With applications set to open shortly, councils and developers are now assessing potential projects that meet the funding criteria.
For builders and civil contractors, the fund may represent increased activity in infrastructure and subdivision works over the coming years, particularly in regional areas.
Developers holding development approvals that have been delayed due to infrastructure funding constraints may see this round as an opportunity to progress stalled projects.
Mr Bleijie encouraged stakeholders to begin preparing documentation ahead of the formal opening date.
“I strongly encourage councils and industry with shovel-ready projects to begin preparing now for applications to open,” he said.
Preparation is expected to include detailed cost estimates, project timelines, evidence of development approval, and documentation demonstrating the housing outcomes the project will deliver.
Measuring Outcomes
A key measure of the fund’s impact will be the speed at which funded projects move into construction and the number of residential lots or dwellings delivered as a result.
In Round 1, the Government reported that funded projects would unlock land for more than 98,000 homes. Monitoring the progress of those projects will provide insight into how quickly infrastructure investment translates into housing supply.
The regional allocation requirement in Round 2 will also be closely watched, particularly in areas experiencing acute rental shortages or rapid population growth.
Looking Ahead
The $2 billion Residential Activation Fund represents one of the Queensland Government’s largest targeted housing infrastructure commitments in recent years.
With $1 billion already allocated and a further $500 million set to be distributed under Round 2, the remaining funding envelope will likely be rolled out in subsequent rounds.
For councils and developers, the release of detailed guidelines provides clarity on eligibility requirements and project expectations. For builders and trades, the fund has the potential to stimulate new work pipelines as infrastructure projects move into delivery phases.
Ultimately, the success of the Residential Activation Fund will depend on how effectively infrastructure funding translates into timely housing supply.
Applications for Round 2 are expected to open in the coming weeks. Further information, including full eligibility requirements and application guidelines, is available via the Queensland Government website at www.qld.gov.au/RAF.
As Queensland continues to grapple with housing demand pressures, infrastructure activation remains one of the central policy tools aimed at unlocking land and supporting new residential development across the state.
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