Unlocking Funding Opportunities for Queensland Councils

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By Zoe Dark and Penny Farnsworth, Senior Advisor, Grant Office & Professional Advisory

As Queensland enters the 2025–2026 financial year, numerous funding opportunities have been announced to support local councils, especially those in regional, remote, and Indigenous areas. These grants provide councils with essential tools to build and upgrade infrastructure, support housing projects, enhance community development and boost tourism. Peak Services is here to help Queensland councils tap into these funding streams, helping your community to prosper and thrive, maximise wellbeing and increase its resilience. 

The Queensland Government budget, announced on Tuesday 24 June, placed a strong emphasis on safety, economic growth, and cost-of-living support. It delivered positive news for councils and regional areas, with $116.8 billion allocated to infrastructure—much of which is expected to benefit the regions.

The Residential Activation Fund will continue, with $1 billion of the $2 billion fund to be allocated by 30 June 2026. The Government has confirmed that half of this is to be invested in regional, rural and remote Queensland, supporting local councils and developers to fast-track critical trunk infrastructure. With $1.8 billion in applications received already, the Government expects to be making announcements very shortly. 

Building on the Equal Partners in Government agreement, the Works for Queensland program has been made permanent with $180 million allocated over two years and $100 million per annum. Local governments will get help to increase recycling through the $130 million Resource Recovery Boost Fund. 

The Country Roads Connect program will also continue, with $100 million allocated to improve the safety of regional roads.  

To help improve disaster resilience, the jointly funded Queensland Resilience and Risk Reduction Program has been allocated $450 million over the next five years. 

The Government has also funded its election commitment to direct an additional $9.2 million over four years into grants to local communities for playgrounds, toilet blocks and car parking facilities.  

Another commitment will see the delivery of $5.7 million over four years for improving infrastructure across the state through the Local Infrastructure Improvement Program, with total funding increased to $36.3 million over the period. 

Money is also set aside to review all 23 regional water plans, while Aurukun and Kowanyama get essential water supply improvements funded.  

Communities in the Torres Strait will see critical upgrades to health-related infrastructure. A number of health facilities state-wide will have capital upgrades and expansions. 

Rural and regional councils are also expected to see some much needed economic stimulus through increased investment in the resources and agricultural sectors, including funding set aside for weirs, water security, dam safety, drought resilience, and biosecurity. Natural resource management groups and rangers also receive funding boosts, while tourism funding gains an additional $446 million over four years in the form of Destination 2045. 

Key New Grants for 2025–2026 

As indicated above, the State Budget builds on and introduces new funding.  

Key Queensland grants for 2025-2026 include: 

• Residential Activation Fund (RAF) - a $2 billion infrastructure fund, launched in April 2025, designed to support and kick-start or ‘activate’ potentially stalled housing developments across Queensland. It earmarks 50% of funding for regional areas, which can cover roads, water, power, and sewer infrastructure, creating the foundation for much-needed housing projects. Round 1 of the RAF, with $500 million available, focused on projects that are ready to proceed promptly. Applications for Round 1 closed on 23 May 2025, and funding announcements are expected from July 2025. Peak supported over 10 Round 1 RAF applications and anticipates following rounds to be well subscribed.  

• Secure Communities Partnership - a $40 million funding partnership aimed at improving safety in small-business precincts. Eligible councils can access up to $10 million in funding for local projects aimed at bolstering public safety. 

• Destination 2045 – unveiled in June 2025, this new tourism plan and fund aims to identify opportunities, streamline approvals and introduce funding for the development of 45 eco-tourism projects by 2045, including new nature trails, stargazing parks and agri-tourism. The plan will provide opportunities for councils to boost tourism while driving sustainable development, with the potential for grants to be available in areas ranging from planning, accommodation, First Nations cultural tourism, dark sky reserves, park and Indigenous land sea rangers, agri-tourism and accessibility initiatives. 

• Resource Recovery Boost Fund - following a consultative review, the Government will release a new waste $130 million strategy and fund with grants to assist councils to build critical waste infrastructure, divert waste from landfill and increase recycling. 

• Local Infrastructure Improvements Program – a $36.3 million program funded over four years to improve infrastructure for local communities, including town halls and playgrounds. 

Several ongoing Queensland programs continue to offer support for local councils, with the much loved and anticipated Works for Queensland (W4Q) program made permanent in this budget.  

The Flying-Fox Roost Management program, which has delivered funds to help councils manage flying-fox colonies over the past three years, is likely to have future rounds opening in 2025-26 and 2026-27. 

These funding programs are critical for Queensland councils seeking to improve infrastructure, enhance environmental sustainability, and support community wellbeing. Now is the time for councils to target priority projects and ensure they are grant-ready, with well-evidenced, competitive applications positioned for success. 

Queensland councils may well have been pleased to receive the news, just before the State budget, that the Australian Government had brought forward more than $1.7 billion in untied Financial Assistance Grants, representing 50 per cent of the 2025-26 allocations. 

At the federal level, funding continues through the Local Roads and Community Infrastructure Program, the Growing Regions Program and other infrastructure initiatives like the $7.2 billion Bruce Highway upgrade, enabling Queensland councils to access funding for road safety and infrastructure improvements. 

Federal Programs to Watch 

Queensland councils can also tap into multiple federal grant programs: 

• Roads to Recovery and Black Spot Programs - these programs provide both annual allocations and targeted funding for local road projects, including for the safety upgrade of high-crash locations. 

• Mobile Black Spot Program -the last round provided $55 million to regional and remote areas to improve mobile coverage in disaster-prone areas. Future rounds are expected under the Better Connectivity Plan for Regional and Rural Australia. 

• Disaster Resilience Grants - continued support for disaster resilience and recovery projects, including through the jointly funded Disaster Ready Fund that funds priority projects included in Councils’ Local Resilience Action Plans. The next round is expected in early 2026. 

• Remote Airstrip Upgrade Program – an annual program to improve the safety and accessibility of remote airstrips and aerodromes. 

• Regional Precincts and Partnerships Program – a program that aims to unify regional places, grow local economies and serve communities through investments in partnerships and precincts. 

These funds are perfect for councils needing extra funding for road safety, and disaster preparedness, economic growth or for improving communications infrastructure.