2026-27 Queensland Budget
The Queensland Budget 2026-27 is badged as both a fresh start and delivering for Queensland. The Courier Mail has described it as “no frills”, with the Brisbane Times noting a “surprise slim surplus…after the next election”.
In terms of outlook, the Treasurer is forecasting an operating surplus in 2029-30, and an improved operating deficit for 2026-27 – down to $6.2 billion from an expected $8.8 billion. The Treasurer has also forecast a reduction in state debt and confirmed the budget contained no new or increased taxes.
In relation to funding for councils, the budget papers outlined both new and continuing measures, with the balance tipped towards continuing existing programs.
There is some good news for First Nations councils with additional funding for the Indigenous Councils Funding Program and funding confirmed for the Closing the Gap Priorities Fund, with several councils advised of successful funding applications recently.
The state government has confirmed the doubling of the Residential Activation Fund Round Two (which has closed for applications). There is $4 million available to councils under Round One of the Regional Business Gateways Program.
While the budget does not contain many new grant programs, it appears most existing programs are continuing. The Local Government Association of Queensland has, however, expressed its disappointment that the budget “failed to deliver a pause in the drop in the rebate paid to councils to protect households from paying the waste levy on household waste” and that the Transport Infrastructure Development Scheme remains capped.
For councils looking for major infrastructure funding, the Australian government has announced a new round of the Growing Regions Fund and that the guidelines for the joint state and Commonwealth Infrastructure Activation Fund are being developed. Expect more details in relation to these programs shortly.
On the Commonwealth/state funding front, the Queensland Treasurer’s Budget speech notes “inexplicable changes to natural disaster funding after a year in which 74 of 77 Queensland local governments have been disaster declared”.
In terms of existing local infrastructure funding, the state government announced that the Works for Queensland program had been made permanent in the 2025-26 budget, with the current round covering 2024-27. The Local Government Grants and Subsidies Program's current round runs from 2024 to 2028, so it may be a while until major infrastructure project funding opportunities open.
The previous round of the Residential Activation Fund and the current round of the Disaster Ready Fund have highlighted the need for councils to be prepared when funding rounds open, as the application periods do not allow much time for detailed designs and quotes.
Details of funding rounds are outlined – as far as they are available on budget day. Other programs and announcements that may be of interest to councils are also summarised below.
Grant Funding 2026-27 Budget
- Indigenous Councils Funding Program – the budget provides additional funding of $40.5 million over two years to support the financial sustainability and operational capacity of Indigenous councils
- Closing the Gap Priorities Fund – the budget invests $73 million to provide better health and infrastructure for Aboriginal and Torres Strait Islander communities with 21 new projects to deliver drinking water supply, wastewater management, waste infrastructure and social infrastructure.
- Residential Activation Fund – the budget confirms the funding for Round Two (now closed) has doubled to $1 billion.
- Land Activation Program – the budget expands the rollout of the program.
- Infrastructure Activation Fund – internal funding is provided to deliver the $200 million fund that will enable infrastructure works to unlock new homes and support the Federal Homes for First Home Buyers Program.
- Waste – the budget provides funding of $267.6 million over five years to support waste reduction and recycling initiatives. This includes funding for annual payments to councils of $214 million, with remaining payments over the four years to be paid upfront in 2026. It also includes funding of $53.6 million for the Waste Reduction and Recycling Activation Fund for programs to reduce waste and disposal to landfill. Councils will continue to receive annual payments.
- Tourism – the budget includes additional funding of $20.7 million over three years and $7.9 million per annum ongoing for an enhanced program focusing on delivering the government's commitment to grow Queensland's protected areas, investing in visitor infrastructure and ecotourism across national parks. The government has recently announced a round of eco-tourism grants.
- Environment – the government announced an additional funding of $1.9 million over three years and $1.1 million per annum ongoing to increase investment in Queensland Parks and Wildlife Services to support the More Rangers, Better Neighbours program.
- Sport – the budget confirms the second round of the $250 million Games on Program to invest in grassroots infrastructure for community clubs, and the Games Legacy Fund to invest in grassroots sports in the regions.
- Regional Business Gateways Program – grants of up to $600,000 available to eligible councils, chambers of commerce, industry and not-for-profit groups for locally led solutions that build capability, strengthen local industries and drive regional economic development.
- Secure Communities Partnership Program – the budget papers confirm the program will continue.
- Women and girls – the Women’s Career Grants will continue to support women returning to paid work, the Empowering Queensland Women Grant program is also continuing, and the Jobs Academy Program is being expanded.
- Multicultural – the Multicultural Connect Grants Program will continue with $3.75 million this financial year, supported by a $1.53 million Social Cohesion Package.
- Agriculture – the budget includes a new Sowing the Seeds of Farming Innovation Fund to support innovation and technology and boost primary production output.
- Veterans – the budget contains $2.3 million in 2026-27 for the Honouring our Veterans Program.
Regional programs and funding
Other programs, including ongoing and previously funded programs, to benefit rural and remote communities include:
- Additional funding of up to $300 million over four years to secure the ongoing operations of the Mount Isa copper smelter and Townsville refinery that will protect regional Queensland jobs and strengthen Australia’s copper capability, subject to the completion of a transformation study and alongside other review points.
- Extension of the Cape Freight Subsidy (Retail Scheme) - additional funding of $19.6 million over three years to extend the Cape Freight Subsidy (Retail Scheme) into 2029.
- $22 million funding over four years for the Cloncurry Pipelines Water Supply Subsidy to subsidise the cost of water supplied to Cloncurry Shire Council via the Northwest Queensland Water Pipeline and the Cloncurry Pipeline.
- The boosted Patient Travel Subsidy Scheme which will see an increase in the fuel subsidy by 11 cents to 45 cents a kilometre.
- The continuation of the Play On! Sports Vouchers program with $62.5 million provided over the next four years.
- Maintenance of 50 cent public transport fares.
- An 3.4% increase in the Electricity Rebate Scheme for vulnerable households.
- Energy savings through the Ergon Energy Roadmap Price Drop.
- Extending the boosted First Home Owner Grant for another four years.
- $5.7 billion funding over four years to boost social and community housing, aiming to deliver 53,500 new homes by 2044.
- An additional $450 million over four years for specialist homelessness support services and crisis support.
- Five new weirs along the Thomson River in Longreach, delivering the Barlil and Cooranga Weirs, improving water supply reliability along the Burnett’s Boyne River and Barambah Creek, as well as advancing the business case for the Water for Warrill irrigation project.
- $43.4 million investment in modernising the firefighting fleet and new fire stations for Kingaroy and Ayr.
- An additional $100 million investment in the Queensland Critical Minerals Fund.
- An additional $7.2 million in funding to suppress fire ants.
- Boosted funding for Beef 2027 and the continuation of the Prosper 2050 program to increase productivity in primary industries.
- $111.3 million funding to expand national parks protected areas.
- $330.5 million funding to protect the Great Barrier Reef by improving water quality and reducing agricultural run-off.
- $10 million funding to help small and family businesses adopt AI solutions.
The Grant Office will continue to closely monitor the 2026‑27 funding pipeline, supporting our council partners to actively progress priority projects from concept to grant‑ready status ahead of short application windows.
We are tracking future competitive rounds under housing‑enabling infrastructure programs, noting that while Round Two of the Residential Activation Fund has closed and its funding has been doubled within the existing $2 billion program envelope, there has been no official public advice to date that this change will alter the intent of Round Three.