$2.4 Billion Commonwealth-Queensland Agreement to Deliver 51,000 New Homes

More than 51,000 new homes are set to be delivered across Queensland under a landmark $2.4 billion agreement between the Federal and Queensland Governments aimed at easing housing pressure and helping more Australians into home ownership.

The partnership will support the construction of thousands of homes across key growth areas, including more than 20,000 properties reserved exclusively for first home buyers. The initiative forms part of broader efforts to increase housing supply, improve affordability and meet growing demand across the state.

Under the agreement, the Australian Government will contribute $2 billion in funding support, made up of $399 million in grants and $1.6 billion in zero-interest concessional loans to help fund essential enabling infrastructure. The Queensland Government will match the grant contribution with an additional $399 million investment.

Funding will be directed toward critical infrastructure projects including road upgrades, sewerage works, water connections and other essential services needed to unlock new residential developments.

Priority Development Areas earmarked for investment include Mount Peter near Cairns, Southern Thornlands in South East Queensland and Waraba in the Moreton Bay region, alongside other emerging growth corridors across the state.

The first homes built specifically for first home buyers are expected to be completed by mid-2028.

The agreement contributes to the Federal Government's broader national housing agenda, including its commitment to support the construction of 100,000 homes for first home buyers in partnership with state governments and industry. It also aligns with the Queensland Government's target of delivering one million homes by 2044.

The Federal Government said the agreement builds on its wider $6.3 billion investment in housing-enabling infrastructure nationwide, including the recently announced $2 billion Local Infrastructure Fund delivered through the Federal Budget.

Queensland is also investing heavily in housing supply through initiatives such as the Residential Activation Fund, which is focused on accelerating development-ready land and reducing barriers to construction.

Additional measures aimed at supporting home ownership in Queensland include the removal of stamp duty on new builds for eligible first home buyers, the extension of the $30,000 First Home Owner Grant until June 2026, and the activation of underutilised state-owned land for housing projects.

Federal Housing Minister Clare O'Neil said the agreement would help deliver tens of thousands of additional homes while prioritising owner-occupiers over investors.

She said investment in essential infrastructure such as roads and sewerage was critical to unlocking new housing developments and improving affordability through increased supply.

Federal Treasurer Jim Chalmers said the agreement was designed to help more Australians enter the property market and address housing affordability challenges.

He said the Federal Budget focused on increasing housing construction, supporting first home buyers and improving access to home ownership for younger Australians.

Queensland Deputy Premier Jarrod Bleijie said the state government was focused on rapidly increasing housing supply to meet growing demand.

He said investment in infrastructure including roads, water, sewerage and power would allow developers and builders to deliver homes more quickly across the state.

Queensland Housing Minister Sam O'Connor said the agreement would help unlock more housing opportunities for Queenslanders by accelerating infrastructure delivery and reducing development delays.

He said the state government was focused on cutting red tape, unlocking land and creating more opportunities for aspiring homeowners across Queensland.