Infrastructure funding must drive new housing supply in Queensland
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Photo by Kindel Media
The Housing Industry Association (HIA) has expressed its support for the Queensland Government’s decision to continue investing in enabling infrastructure through the second round of the $2 billion Residential Activation Fund. However, the HIA has stressed the importance of ensuring that this funding is strategically allocated to genuinely boost new housing supply.
Michael Roberts, Executive Director of HIA Queensland, highlighted the significance of the additional $500 million commitment. “The additional $500 million commitment recognised the critical role trunk infrastructure plays in unlocking land for new homes. Getting water, sewerage, roads and power into new communities is often the difference between a project sitting on paper and homes actually being built,” he stated.
Queensland is currently facing an urgent need for more homes, and infrastructure bottlenecks have been a significant barrier to bringing new land to market. Mr Roberts emphasised that while infrastructure funding is crucial, it will not address housing shortages unless it is paired with stronger expectations on local governments to improve planning performance. “Taxpayer funding should be directed to councils that are actively demonstrating they are committed to increasing land supply and improving approval timeframes,” he said.
He further explained that infrastructure funding alone will not deliver new homes if local councils are not proactive in releasing land and progressing planning reforms. “If a council is not releasing land, not progressing planning reforms, or allowing applications to sit in the system for excessive periods, infrastructure funding alone will not deliver new homes,” Mr Roberts noted.
The HIA has called for Round 2 funding to be focused on projects that genuinely unlock new housing, rather than being used for retrospective funding of already committed works or simple upgrades. “This funding needs to be directed at projects that bring forward new lots and new homes, not at fixing up legacy infrastructure that does not expand supply,” Mr Roberts explained. The test, he added, should be straightforward: “Will this project result in additional homes being built sooner than would otherwise occur? If the answer is no, then it should not be the priority for funding.”
A notable aspect of the funding allocation is the requirement for at least 50 per cent to be directed to regional Queensland. Mr Roberts described this as a positive step, considering that many regional centres have available land but lack the necessary infrastructure to support growth. “Regional communities across Queensland are experiencing strong population growth, tight rental markets and increasing affordability pressures,” he said. “Targeted infrastructure investment in these areas can unlock development, support local jobs and improve housing availability.”
While infrastructure funding is a critical component, Mr Roberts pointed out that it must be accompanied by planning reform, faster approvals, and policies that encourage new land to come to market. “The Queensland Productivity Commission has identified the priority areas for planning reform, and we need a commitment beyond just acknowledging the issue,” he stated.
Mr Roberts concluded by emphasising that housing affordability will only improve when all parts of the system work together to support supply. “Housing affordability will only improve when all parts of the system are working together to support supply,” he said.
The HIA’s call for a strategic approach to infrastructure funding comes at a time when Queensland is grappling with a housing supply crisis. The organisation’s insistence on tying funding to local government performance and planning reform reflects a broader push for accountability and efficiency in the allocation of resources. As the state moves forward with its infrastructure investment plans, the focus will be on ensuring that these funds translate into tangible increases in housing supply, addressing the pressing needs of Queensland’s growing population.