Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

The Crisafulli Government has framed its first Budget as a “fresh start” for housing, planning and investment—but industry leaders say delivery will be the ultimate test. With the 2032 Olympics looming, the $116.8 billion four-year capital program includes a $7.1 billion investment in Games venues and athlete accommodation—the state’s largest infrastructure commitment on record. Queensland Treasurer David Janetzki says it’s a generational opportunity to “drive tourism and support grassroots sporting clubs throughout the state” while unlocking broader infrastructure, housing and economic benefits. But for Queensland’s property and development sector, the real focus is on how—and how fast—the government can convert commitments into delivery. Foreign review offers reset on stalled capital A key win welcomed across the sector is the Government’s agreement to review Queensland’s ex-gratia relief guidelines for foreign investor surcharges. What the 2025–26 Qld Budget means for property Developers have long argued the Additional Foreign Acquirer Duty (AFAD) and Foreign Land Tax Surcharge (FLTS) are opaque, slow and misaligned with project timelines, deterring crucial international capital. The review will be undertaken via the reinstated Property Consultative Committee and is expected to result in updated guidelines by the December Mid-Year Economic and Fiscal Review. “The commitment to review Queensland’s ex-gratia relief guidelines is an essential step in unlocking growth,” Property Council of Australia Queensland (PCA) executive director Jess Caire says. ▲ Treasurer David Janetzki: Budget a generational opportunity. “As it stands, they are not fit for purpose, offer little certainty up front and are counterintuitive to the Government’s housing and investment targets. “The decision to undertake this review in partnership with industry recognises the pivotal role we play in shaping reforms that reflect the realities of project delivery and investment decisions.” The PCA’s Time for a Fair Go report found foreign investment in homes had plunged 85 per cent since the surcharge was introduced, costing Queensland around 33,000 homes and 38,500 jobs. The Government has also confirmed it has cleared the backlog of outstanding AFAD and FLTS relief applications. Infrastructure funding welcomed with caveats A $2-billion commitment over four years to the Residential Activation Fund aims to unlock 158,000 homes by supporting enabling infrastructure— including roads, water and sewer connections. The first $500-million tranche has already opened for applications, with $1 billion due to be allocated by June 2026. ▲ Urbis chief economist Richard Gibbs: Streamlined approvals and cost control needed. But Urbis chief economist Richard Gibbs says the headline figure will need to be backed by co-funding structures and fast-tracked approvals to be truly catalytic. “It might sound like a lot of money but it’s not a large amount in this environment,” Gibbs says. “Unless it’s paired with streamlined approvals and cost control, it’s unlikely to accelerate delivery.” Planning gets funding but digital reform unclear The Budget includes $31.3 million over four years to prepare 13 regional plans and $1 billion for supporting infrastructure. But questions remain about digital transformation of the planning system. Planning Institute of Australia (PIA) Queensland state manager Nicole Bennetts says the funding signals growing recognition of planning’s role in growth outcomes. “Regional plans, when prepared together with infrastructure plans—and backed by implementation funding—provide greater certainty to councils, industry, and communities on where and how responsible growth will occur,” Bennetts says. A separate $650-million digital transformation fund was announced but no detail was provided on how much will directly enhance planning systems. “Planners are looking for initiatives that streamline assessments, improve data access and transparency and support the community’s understanding of planning,” she says. “There’s more work to do to turn digital planning ideas into real-world efficiency gains.” Shared equity—deposit relief but limited reach The $165-million Boost to Buy shared equity scheme—the Budget’s flagship housing affordability initiative—will help 1000 first-home buyers over two years. ▲ REIQ chief executive Antonia Mercorella: Scheme reflects today’s prices. The scheme offers up to 30 per cent government equity in new homes and 25 per cent in existing properties, with a $1-million price cap and income thresholds of $225,000 for couples and $150,000 for singles. “This is a nation-leading home ownership scheme,” Janetzki says. “We’re reducing the deposit gap and unlocking ownership sooner.” Real Estate Institute of Queensland (REIQ) chief executive Antonia Mercorella says the program reflects modern market realities. “With suitable income eligibility thresholds … the scheme reflects modern property prices across Queensland and makes it the most attractive in the nation,” she says. Oliver Hume chief economist Matt Bell says buyer sentiment is already lifting, with first home buyer participation in their south-east Queensland projects reaching 50.2 per cent in 2025—up from 25.4 per cent in 2024. “We would expect to see increased demand across all of our projects once [Boost to Buy] goes live later this year,” Bell says. Property Investment Professionals of Australia (PIPA) chair Nicola McDougall also supports the scheme, calling it “pragmatic and market-aligned”. ▲ PIPA chair Nicola McDougall: Simple but powerful next steps. Still, the sector says it’s no silver bullet. “With only 1000 places and a pilot timeframe, it’s a targeted mechanism, not a large-scale affordability solution,” Gibbs says. Housing and homelessness pressure mount Queensland remains more than 96,000 homes short of its National Housing Accord target of 247,000 by 2029, according to sector estimates. Social housing waitlists have climbed beyond 45,000, and long-term homelessness is up 25 per cent in the past year. “There’s a critical need to accommodate this and that displacement’s been caused by quite a significant increase in not just house prices in greater Brisbane and SEQ generally but also in relation to rents,” Gibbs says. The Budget includes a $600-million increase in homelessness funding over four years and $5.6 billion for social and community housing—including funding to support the delivery of 53,500 social homes by 2044. “This has been years in the making,” he says. “It will take time and scale to reverse.” He also says traditional construction methods won’t meet the state’s housing targets fast enough. “We think modular is the only way you’re going to be able to deliver the quantity of housing needed in a reasonable timeframe,” he says. “It’s efficient, cost-effective and proven in global social housing programs.” Investor incentives still missing McDougall says PIPA welcomes the opportunity to collaborate on reforms that draw in—and retain—long-term property investors. “Removing stamp duty disparities between owner-occupiers and investors, and updating land tax thresholds to match today’s values, would be simple but powerful next steps,” she says. REIQ also called for a phased shift to land tax, beginning with exemptions for downsizers to unlock housing stock. Olympics drive infrastructure and expectations The Brisbane 2032 Games underpin much of the state’s infrastructure pipeline, with $4.7 billion committed to Games-related delivery, including $950 million for athlete villages and $832 million for venues. “After the long runway had been squandered, the Crisafulli Government has a plan to deliver the 2032 Games,” Janetzki says. “This is about more than sport, it’s about reshaping Queensland’s future.” As the sector welcomes the Budget’s tone and commitments, Caire says implementation is now the real test. “Aligning policy settings with the narrative is essential to proving we can genuinely walk the talk,” she says.

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