Developers, councils and utility providers have until 30 November to bid for grants and interest free loans for roads, water and sewer. The application documents say more about how the money works than the announcement did.
Queensland’s $2.4 billion Infrastructure Activation Fund is now open for applications.
Developers, councils and utility providers can bid for grants and interest free loans to build the roads, water mains and sewer works that hold back new housing. Applications close at 2pm AEST on 30 November 2026.
The stated goal is to bring forward around 51,000 homes in growth areas. For builders, three questions matter more than the headline. Where is the money going, who gets it, and when does it become work on the ground?
What is the Infrastructure Activation Fund?
It is a joint program between the Queensland and Australian governments, run by Economic Development Queensland (EDQ). The two governments announced the deal on 18 May.
It is Queensland’s share of the Commonwealth’s 100,000 Homes for First Home Buyers program. That national program is funded through a $2 billion grants agreement and an $8 billion repayable grants agreement, both registered from 20 February 2026.
In Queensland the money comes in two parts. There is $798 million in grants, with $399 million from each government. Then there is nearly $1.6 billion in Commonwealth backed loans that charge no interest.
EDQ says the funding will be spent over five years. The homes it unlocks are due to be delivered over eight years, to mid 2034.
What is catalyst infrastructure?
Catalyst infrastructure is the trunk network that has to exist before a greenfield estate can be subdivided and built on. Under this fund it covers water, sewerage, stormwater and transport works such as major roads and intersections.
It does not include the internal roads and services inside a subdivision, or the houses themselves.
Where will the money be spent?
Three Priority Development Areas (PDAs) get first call. PDAs are large sites where EDQ, rather than the local council, controls planning. According to EDQ’s key growth areas page, Waraba in the City of Moreton Bay covers about 2,900 hectares and is projected to deliver 16,844 homes.
Mount Peter in Cairns’ southern growth corridor covers about 2,650 hectares, with 13,145 projected homes. Southern Thornlands in Redland City covers about 890 hectares, with 6,503 projected homes.
A further 14,875 homes are expected from other growth areas. EDQ names Caloundra South, Greater Flagstone, Ripley Valley and Yarrabilba among the possible candidates.
EDQ expects the first homes to reach the market in 2026 or 2027 at Waraba and Southern Thornlands, and in 2027 or 2028 at Mount Peter.
Who can apply, and what are the rules?
The Market Invitation released on 12 October sets out the terms. Eligible applicants are developers or landowners with an Australian registered company, councils, utility providers and Queensland Government agencies.
Projects must unlock housing in a PDA or provisional PDA. The infrastructure has to be finished by 30 June 2031, start within 24 months of a funding agreement, and lift housing delivery above what would otherwise happen.
EDQ will favour works that serve several landowners or development fronts, unlock the most homes and can be delivered inside the five year program. Applicants that put in money of their own are viewed more favourably.
Grants are aimed at big ticket works, such as wastewater treatment plant upgrades and major intersections. Loans are suited to more localised trunk works.
Loans must be repaid in two equal instalments before the fifth anniversary of the first drawdown. Where the PDA development scheme allows, infrastructure charge offsets can become available once the loan is repaid.
Land purchases, internal subdivision works, house construction and infrastructure charges are all excluded costs. Every funded project must also go to competitive tender with at least three quotes, unless EDQ agrees otherwise.
How exclusive are the first home buyer homes?
Government announcements describe more than 20,500 homes as exclusively for first home buyers. The program documents describe something narrower.
Developers must sign a memorandum of understanding (MOU) with EDQ before they can access funding. The template MOU records an in principle commitment to reserve 35 per cent of new dwellings in a developer’s portfolio for first home buyers.
That reservation runs for three months from release. If a reserved home has not sold to a first home buyer by then, the developer can offer it on the open market.
The reservation runs for three months from release.
The MOU states that, apart from clauses on announcements and general terms, it is not intended to create legally binding obligations. It describes the commitment as best endeavours, backed by reporting to EDQ twice a year.
To count, a buyer must move into the home within 12 months of settlement or completion and intend to live there for at least six continuous months.
For builders selling house and land packages in these estates, that three month window is likely to shape how stock is released and marketed.
When does this become work for builders?
Not straight away. EDQ’s indicative timeline has successful applicants notified in late 2026 or early 2027, with funding agreements signed in the first half of 2027.
The infrastructure then has to be tendered, built and commissioned. Civil contractors see that work first. Residential builders follow once lots are serviced and titled.
The Commonwealth and Queensland governments have said the first homes for first home buyers are expected to be completed by mid 2028.
How does it fit with the Residential Activation Fund?
Queensland already runs its own $2 billion Residential Activation Fund, which pays for trunk infrastructure for councils and landowners across the state. Its second round, worth $500 million, opened in February.
EDQ says the new fund is aimed at housing over and above projects already planned or supported through the state fund. Applicants can still seek other funding, but this money cannot replace existing grants or pay for council projects that already have an approved budget.
The practical difference is geography. The state fund is spread across regional and southeast Queensland. This one is concentrated in PDAs.
Are other states doing the same?
Yes, under the same federal program, though each deal looks different.
South Australia signed first, on 30 January 2026. That $801.5 million deal targets about 17,000 homes, including 6,877 for first home buyers.
The ACT followed on 20 April with $250 million in Commonwealth support for around 4,900 homes, more than 1,700 of them for first home buyers. Tasmania agreed in principle the next day to around 4,000 homes, including up to 2,101 for first home buyers.
Queensland’s is the largest deal announced so far. At the time of writing we could not find announced deals for New South Wales, Victoria, Western Australia or the Northern Territory.
THE GOOD BUILDER TAKE
Infrastructure has been a persistent brake on greenfield housing supply in fast growing parts of Queensland. Funding it directly, in places where the state already controls planning, is a reasonable lever.
But the figures worth watching are not the $2.4 billion or the 51,000 homes. They are how many applications land by 30 November, how quickly agreements are signed in 2027, and how many reserved homes actually sell to first home buyers inside the three month window.
The reporting built into the MOU should make that last number measurable. Whether it is published is a different question, and one we will keep asking.
EDQ is running industry briefings through October, and questions about the fund go to [email protected]. We will report on the projects that are funded when they are announced. Follow The Good Builder for updates.
Frequently asked questions
It is a $2.4 billion joint Queensland and Commonwealth program run by Economic Development Queensland. It offers $798 million in grants and nearly $1.6 billion in interest free loans for roads, water, sewer and stormwater works that unlock housing in Priority Development Areas.
Applications close at 2pm AEST on 30 November 2026. They are lodged online through EDQ’s SmartyGrants portal. EDQ expects to notify successful applicants in late 2026 or early 2027.
Developers or landowners with an Australian registered company, Queensland councils, utility providers and Queensland Government agencies. Developers must sign a memorandum of understanding with EDQ covering first home buyer commitments before entering a funding agreement.
Not permanently. Under the template MOU, developers commit in principle to reserve 35 per cent of new dwellings for first home buyers for three months after release. Reserved homes that do not sell to a first home buyer in that time can be sold on the open market.
Yes. Loans are repaid in two equal instalments before the fifth anniversary of the first drawdown. Where the relevant development scheme allows, infrastructure charge offsets may become available once the loan is repaid.
Related articles
QLD’s Residential Activation Fund: What Has Been Announced, What Is Under Construction, and What Comes Next
Queensland Releases Guidelines for $500 Million Residential Activation Fund Round 2
Australian Construction Industry Trends Guide
Last updated: 17 October 2026. Funding amounts, dates and conditions are drawn from Economic Development Queensland’s Infrastructure Activation Fund Market Invitation (October 2026) and program pages as at that date.
General Information Only: This article is general information only and does not constitute legal, financial or professional advice. It does not take into account your particular circumstances. Before acting on anything in this article, check the current program documents and seek advice from a qualified professional.
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