QLD Budget: Record infrastructure funding and housing initiatives 

The 2025/26 Queensland budget was handed down on June 24 2025 and contains a range of significant wins for the property industry.

From a property perspective, the budget is headlined by the Queensland Government’s announcement that it will be reviewing the ex-gratia relief guidelines for Queensland’s foreign taxation settings as well as the announcements of the State’s new $165 million shared equity scheme.

In particular, the commitment to review Queensland ex gratia relief framework for the Additional Foreign Acquirer Duty (AFAD) and Foreign Land Tax Surcharge (FLTS) is a significant win for industry and the result of extensive Property Council advocacy.

The current regime sees Australian-based developers who have delivered the communities, homes and jobs that Queenslanders rely on unfairly taxed for utilising offshore capital, through Additional Foreign Acquirer Duty (AFAD) and Foreign Land Tax Surcharge (FLTS).

The Property Council of Australia has long challenged the settings that were first introduced in 2016 as short-sighted and small-minded and highlighted that they have been responsible for deterring the critical patient capital Queensland needs.  The review is a welcome step in turning the “open for business” message into action and builds a foundation for meaningful investment partnerships to build and shape Queensland’s cities for the future.

The newly reinstated Property Consultative Committee, secured earlier this year by the Property Council, will provide input as part of the review.

Budget detail

The key headlines of 2025-26 Budget includes:

• A commitment to review ex-gratia relief guidelines for Foreign Land Tax Surcharge (FLTS) and Additional Foreign Acquirer Duty (AFAD) through the Property Consultative Committee.
• $165 million Boost to Buy shared equity scheme
• A four year $2 Billion commitment for the Residential Activation Fund (RAF)
• $5.6 Billion for new community and social housing.
• $4.7 Billion towards the Brisbane 2032 Games delivery plan.
• $116.8 Billion record infrastructure funding.

The Budget papers also confirmed that the property industry remains the key taxation revenue stream for the Government, with property related taxes and charges (both transfer duty and land tax) delivering 37.1 per cent of state tax revenue. 

Key Economic Data

Property taxes

The 2025–26 Queensland Budget includes:

• $7.2 billion in stamp duty revenue
• $2.8 billion in land tax revenue
• Combined property taxes (excluding payroll tax) equate to 37.1 per cent of total state tax revenue
• The Budget confirms the backlog in outstanding Additional Foreign Acquirer Duty (AFAD) and Foreign Land Tax Surcharge (FLTS) ex gratia relief applications has been cleared. The Treasurer has also announced a review of the AFAD and FLTS ex gratia relief guidelines in consultation with the Property Consultative Committee, with the aim to announcing improved guidelines in December’s Mid-Year Financial and Economic Review.
• The Government Indexation Rate for fees and charges has been set at 3.4 per cent for 2025-26.

Housing Initiatives

The 2025–26 Queensland Budget includes an $8.1 Billion housing commitment, including:

• $165 million for a new Boost to Buy shared equity scheme. The government will take up to 30 per cent equity in new builds and 25 per cent for existing homes, up to a price cap of $1 million. Income limits set at $150,000 for singles and $225,000 for couples
• $2 billion over 4 years for the Residential Activation Fund, with $1 billion to be allocated by June 30 2026. Successful applicants for the first $500 million tranche to be announced soon.
• $30,000 First Home Owner’s Grant extended by 12 months
• $500 million per year to support Queensland’s Housing Investment Pipeline to deliver 53,500 social and community homes by 2044
• A combined $573.9 million for crisis accommodation and specialist homelessness support
• $60.5 million to eligible homeowners to raise, repair or retrofit their homes to incorporate flood resilient design and materials to reduce the impacts of future flood events.

Infrastructure

The total Queensland Infrastructure Pipeline in the Budget is a $29.3 billion capital program for 2025-26, including $9.26 billion in transport, $3.67 billion for health under the Hospital Rescue Plan and $1.07 billion in education, $1.75 billion for Energy Queensland.

Key highlights and projects include:

• $27.5 million to support local governments in removing barriers to new housing construction
• $22.4 million in the South East Queensland Community Stimulus Program to fast-track SEQ local government investment in new infrastructure and community assets
• $48.4 million in the Works for Queensland program to deliver priority infrastructure, planning and capability in the regions
• $1.75 billion through Energy Queensland for replacement, augmentation and connection works across the Ergon and Energex networks, including several new substations
• $68.1 million for Economic Development Queensland to deliver urban renewal at Northshore Hamilton, including civil and precinct-level infrastructure
• $50 million for South Bank Corporation to enhance the South Bank Parklands and South Bank Corporation’s commercial assets, as well as the Brisbane Convention & Exhibition Centre
• $89.2 million through the South East Queensland Liveability Fund to support local government projects creating liveable, sustainable and health communities
• $26 million for the Queensland Reconstruction Authority under the Queensland Betterment Fund for high-priority infrastructure projects
• $245 million for a new Barron River Bridge
• $207 million towards the Cairns Marine Precinct Common User Facility, including new hardstand areas

Brisbane 2032 Olympics and Paralympics Games

The 2025–26 Queensland Budget includes capital expenditure for Brisbane 2032 Olympic and Paralympic Games venues, athletes villages and transport infrastructure.

The budget includes:

• $864 million towards the first minor venues: Sunshine Coast Stadium, Barlow Park Stadium, Moreton Bay Indoor Sports Centre, Logan Indoor Sports Centre and the Sunshine Coast Mountain Bike Centre.
• More than $900 million on new athletes’ villages in Brisbane, the Gold Coast and Sunshine Coast
• Olympic and Paralympic Games transport infrastructure including the Gold Coast Faster Rail project, Stage 1 of the Coomera Connector and The Wave project on the Sunshine Coast.

Skills and training

The 2025–26 Queensland Budget includes total funding for skills and training. This will include:

• $201.1 million to establish 4 new TAFE Centres of Excellence in Rockhampton, Moreton Bay, Caloundra and the Southern Moreton Bay Islands.
• Extending the 50 per cent Apprentice Payroll Tax Rebate for a further 12 months.
• $80 million annually to the Skilling Queenslanders for Work initiative to support up to 15,000 people into jobs.

Cost of living

The 2025–26 Queensland Budget is committing to new cost of living relief initiatives. This will include:

• Increasing the Electricity Maintenance Guarantee to $1.6 billion to maintain generation assets and put downward pressure on power bills.
• $37.5 million for free health checks for kids in kindy.
• Ongoing commitment to 50 cent public transport fares.
• $26.3 million for the Supercharged Solar for Renters program to reduce power bills for renters.
• Restoring indexation to the Electricity Rebate Scheme for vulnerable households – providing an uplift in support for more than 600,000 Queensland households.
• $200 Play On! Voucher Program to help reduce the cost of participation in the biggest investment ever
• $100 Back to School Boost Vouchers for primary school students to help cover the cost of school essentials every year.

Other key initiatives

The 2025–26 Queensland Budget includes a number of other key initiatives, including:

• $31.3 million over 4 years to lead development of 13 new regional plans across Queensland.
• $150 million over 3 years to bring forward delivery of infrastructure targeting the Waraba Priority Development Area

Regional Round Up

Townsville

Key initiatives in Townsville include:

• $89.1 million for expanded community and social housing across North Queensland
• $15.3 million towards a raw water pipeline, pumping station and new water reservoir to support the Lansdown Eco-Industrial Estate
• At least 165 new overnight beds for Townsville University Hospital under the Hospital Rescue Plan
• $53.2 million for expansion of midwifery and paediatric services at Kirwan Health Campus
• $45 million for a new police complex at Kirwan
• $43.5 million for the North Queensland Resilience Program under the Queensland Reconstruction Authority
• $27.4 million to complete the Townsville East Port Laydown Area

Sunshine Coast

Key initiatives on the Sunshine Coast include:

• The government is providing additional funding for The Wave (Caloundra to Maroochydore) accelerated planning.
• Queensland Transport and Roads Investment Program includes funding towards the Mooloolah River Interchange
• $17 million contribution towards the Sunshine Coast Stadium project
• $10 million over 3 years to establish 2 new manufacturing hubs in Toowoomba and the Sunshine Coast

Gold Coast  

Key initiatives on the Gold Coast include:

• $300 million in State funding as part of the Logan-Gold Coast Faster Rail project to double the number of tracks between Kuraby and Beenleigh, as well as a number of level crossing removals
• A new Coomera Hospital with at least 600 new overnight beds will be delivered as part of the Hospital Rescue Plan.
• $116.3 million to expand and improve social and community housing, with 366 social homes in construction or under contract towards the delivery of 53,500 social and community homes by 2044,
• A commitment to planning for the east-west connector road upgrades.
• Delivering the Coomera Connector to ease the pressure on the Pacific Motorway and provide easier access between Brisbane and the Gold Coast.

To view the Queensland Division’s media release on the state budget, please click here.