Momentum is building to fund housing supply in the Queensland State Budget 2026-27

The Queensland Government’s 2026-27 Budget has reinforced supports that accelerate the funding and delivery of housing supply, rather than new policy reform. While there are limited new incentives for developers, the Budget scales up existing programs designed to unlock land and increase the volume of social and community housing.

Record investment in social and community housing

A central feature of the Budget is a record $5.725 billion capital program for social and community housing over four years from 2026-27. This funding builds on previous commitments and reflects a shift in focus towards delivering homes already in the pipeline, supporting the 6,500 homes that are currently underway, and the goal of delivering 53,500 homes by 2044.

Unlocking land through infrastructure investment

Complementing direct housing delivery is the continued rollout of the $2 billion Residential Activation Fund (RAF), with the Government doubling Round Two funding to $1 billion in this Budget. The RAF is designed to address the availability of enabling infrastructure such as water, sewerage, roads and power, which are required before development can proceed and remain one of the key barriers to housing supply. To date, the program has already committed funding to projects expected to unlock land capable of supporting around 98,000 homes across Queensland.

The Budget also introduces a new Economic Development Queensland (EDQ) Infrastructure Activation Fund, with $200 million committed over four years as part of a matched $399 million contribution. The measure, delivered in partnership with Federal Government, is expected to support the delivery of more than 51,000 new homes, including over 20,500 for first home buyers, and reflects a continued focus on enabling infrastructure as a lever to bring forward housing supply.

A coordinated approach to supply

These measures reflect a dual-track approach to housing supply which include direct government delivery of social and community housing, and enabling private sector development through infrastructure funding, and aligns with the Government’s broader objective to increase housing supply at scale and address structural shortages over the long term.

BDO comment

The 2026-27 Budget signals a shift from policy expansion to execution, with funding designed to accelerate housing delivery rather than materially change feasibility settings. Infrastructure investment should help unlock development in targeted corridors by addressing servicing constraints, but broader feasibility challenges, particularly construction costs, funding conditions and approval timeframes, remain.

With Queensland accounting for over 25 per cent of national population growth but less than 20 per cent of dwelling completions, the supply-demand imbalance is expected to persist, particularly in regional markets where rental affordability pressures are intensifying. In this environment, opportunities will be concentrated in infrastructure-aligned and delivery-ready projects, as well as partnerships supporting social and affordable housing, while developers and investors will need to maintain disciplined project selection and capital management.

How BDO can help

BDO’s real estate & construction team can help you assess how the Budget measures may affect your strategy, investment decisions and project pipeline.

Working with our specialists across tax, advisory and audit, we support clients across a number of challenges and opportunities across the sector. Contact us to find out how we can support your organisation.