Queensland’s housing shortage has prompted another round of state government funding, with the Crisafulli Government’s $2 billion Residential Activation Fund (RAF) backing new infrastructure projects across Toowoomba, the South West, and Far North Queensland.
The two announcements totalling $46.3 million in state funding are expected to unlock 2,750 new homes across regional Queensland, addressing critical supply pressures while supporting local jobs and investment.
Toowoomba and South West Queensland: 2,560 Homes
In Toowoomba and surrounding regions, $28.2 million has been allocated to four key projects, removing infrastructure bottlenecks that have delayed residential land from coming to market.
The headline investment is $20.1 million for the Central Highfields Activation Project, a $22 million initiative to deliver road upgrades, stormwater systems, and underground utilities. Local modelling suggests this will free up land for at least 343 new dwellings across greenfield and infill sites.
Other allocations include:
- $5 million for the Fernvale South Productivity Link, a 4.3km road opening capacity for 2,000 homes.
- $2 million for Gatton’s Lakeview Estate, supporting infill growth via a new sewer main.
- $1 million for Dalby’s Hayden Street Upgrade, enabling subdivision works on Blaxland Road.
Deputy Premier Jarrod Bleijie framed the investment as part of a long-term push to rebalance regional housing:
“These partnerships with local councils will transform the housing landscape in regional, rural and remote Queensland. The RAF is breaking down barriers and giving more Queenslanders a place to call home.”
Local councils echoed the sentiment. Toowoomba Mayor Geoff McDonald called the Highfields project “critical to supporting one of our region’s fastest-growing areas”, while Somerset Mayor Jason Wendt said the Fernvale road link would “open a new housing corridor while easing congestion in the town centre.”
Far North Queensland: 190 Homes
Further north, five smaller-scale projects worth $18.1 million will deliver 190 new homes across Cooktown, Port Douglas, Innisfail and Mission Beach.
The largest, Craiglie Residential Subdivision in Port Douglas ($6.6 million), will convert a 19.6-hectare greenfield site into a serviced estate with stormwater, sewerage and road infrastructure.
Other projects include:
- $5.4 million for Mission Beach’s Seaview Estate subdivision.
- $4.1 million for Innisfail’s Eaton Estate.
- $883,000 for Mission Beach’s Serenity Project.
- $1.1 million for Cooktown’s Gigers Residential Subdivision.
Douglas Shire Mayor Lisa Scomazzon said the Craiglie subdivision would provide a “significant step forward in easing housing pressures in the shire.”
Cook Shire Mayor Robyn Holmes reinforced the urgency: “Housing remains one of the greatest challenges across our region, and we welcome projects that will help unlock new supply.”
Regional Focus and Policy Context
The RAF is a central pillar of the Securing Our Housing Foundations Plan, with at least half the $2 billion fund reserved for regional, rural and remote communities.
Since launching, the scheme has attracted 178 project submissions, reflecting pent-up demand for enabling infrastructure. Earlier in 2025, $89 million was directed to 16 Far North Queensland projects, expected to deliver 3,000 homes.
Treasurer David Janetzki, also the MP for Toowoomba South, emphasised the urgency:
“Doubling the first round of RAF funding ensures more homes can be built sooner, and more families can move into our region.”
The TGB Take
For builders, developers and councils, the message is clear: the state government is willing to invest in the “last mile” of infrastructure that often stalls new estates. Roads, sewer mains and stormwater systems aren’t glamorous but they are the gatekeepers to supply.
Toowoomba’s Highfields project shows how relatively modest investments can unlock hundreds of homes in high-demand corridors, while Mission Beach and Cooktown demonstrate how the fund is targeting smaller communities under housing strain.
The critical test will be speed. Funding allocations are one thing delivery on the ground is another. Builders across Queensland will be watching closely to see how quickly these projects move from announcement to execution, and whether supply meaningfully eases the state’s housing bottleneck.
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