Grants: Issues, opportunities and how to maximise funding

Published on 23 April 2026

By Zoe Dark, Principal Advisor and Grant Office Manager

Like many things, the grants landscape may be radically altered by global events and the resulting changes to government budgets, projections, and project and service costs.

At this stage, however, we are still seeing encouraging signs of activity across the grants sector, albeit with funding rounds becoming increasingly competitive. Funding remains available across infrastructure, housing, resilience and regional development programs as well as for projects aimed at boosting employment, reducing crime or enhancing community services.

Funder expectations, however, appear to be shifting, with success for applicants increasingly dependent on their capacity to not just identify opportunities but to be fully prepared and able to capitalise on them when they emerge. Grant programs at the state and federal level are increasingly prioritising projects that demonstrate clear strategic alignment with both funder/government priorities and identified council priorities, strong economic justification and a high level of delivery confidence from day one – in both design and costing maturity. This is particularly evident for infrastructure and housing related projects, where factors such as scale, cost, delivery risk and councils past performance are under heightened scrutiny.

Funders are also focusing on applicants demonstrating that their proposed solution is the best solution, with all options analysed and the proposal subject to a whole-of-life cost assessment. We will cover these areas in more detail in another edition.

Adding to the environmental complexity has been the almost simultaneous release of several highly subscribed grants, such as the Residential Activation Fund, with high expectations of project readiness and relatively short timeframes. This presents further challenges to councils, with limited time to prepare, complete designs, quotes/estimates and business cases and submit high-quality applications.

At Peak, forward demand remains high, with the Grants Office often fully committed well ahead of key program announcements. This early commitment from councils reflects the shift across the sector, with numerous councils are investing earlier in project development, recognising that demonstrated project readiness is critical to success.

Price uncertainty: now a funding risk

As mentioned at the outset, price uncertainty is now an increasingly important factor. Global unrest, fuel shortages, increased construction activity, supply chain disruption, labour constraints and sustained infrastructure demand continue to drive cost volatility across key inputs. This creates a direct risk for funders. Projects approved today may not be deliverable within budget tomorrow.

Projects that demonstrate credible, defensible cost positions are increasingly favoured. This includes recent, market-tested quotes or estimates (with full quotes strongly preferred by some funders, notwithstanding the difficulty in obtaining them in remote areas), alignment between design maturity and estimate accuracy, clear assumptions and realistic contingency within program limits.

Projects that reduce long-term cost exposure and operational risk are inherently more resilient and more attractive to funders. Leading organisations are actively managing price uncertainty risks during planning, at submission, during planning, at application, at tender and throughout delivery.

This includes progressing projects through staged cost gates, so estimates are refined as design matures, as well as considering current external environmental factors. It includes early market sounding to test assumptions with contractors and suppliers, particularly for specialised components. Benchmarking against recent comparable projects can also help validate assumptions and demonstrate credibility.

Professional procurement planning is also critical. Approaches such as early contractor involvement, two-stage tenders and design and construct models can help balance risk, take advantage of the latest technological advancements and improve cost certainty (where supported by the funder).

Escalation and contingency must be applied with discipline. Assumptions should reflect current market conditions, noting that rapid cost movements, particularly in fuel, materials and labour, may mean published program thresholds do not fully capture current pricing risk. Where funders set a contingency limit, councils may need to factor in the need for a co-contribution to absorb any identified price uncertainty.

Where appropriate, and where financial capacity allows, councils can further strengthen their position by confirming a commitment to deliver the full project scope and fund any shortfall beyond the grant contribution.

Councils can also demonstrate how risks will be managed through scope prioritisation, staging or alternative delivery approaches – where clearly defined and supported by the funder.

In both cases, this helps provide funders with confidence that cost risks have been actively considered and will not compromise project delivery or intended outcomes.

What’s coming: reading the pipeline

While not all programs are formally open and some may not open, there are still some clear indicators of what is likely to emerge. Budget uncertainty at federal and state level may impact or defer future funding rounds. The Regional Airports Upgrade Program is showing signs of progressing toward Round 12, with budget signals indicating provision for a further round.

The Regional Precincts and Partnerships Program remains uncertain. Many councils have applications that have been in assessment for more than 12 months with no outcome, while program release, announcement and round closure timeframes have been inconsistent and difficult to predict.

Uncertainty in timing means even well-prepared projects can be excluded or placed at risk where administrative requirements or submission windows do not align with standard council preparation processes. Extended delays can also result in market engagement, cost estimates and resourcing assumptions becoming outdated in rapidly changing conditions.

Disaster and resilience funding: preparation is everything

Disaster resilience funding continues to be a major focus, with the Disaster Ready Fund expected to progress toward future rounds, including Round 4. A key tool in this space is the Local Resilience Action Plan (LRAP).

LRAPs are increasingly being used to inform prioritisation and strengthen alignment under Queensland Reconstruction Authority programs. Projects clearly identified and justified within an up-to-date LRAP are now considered essential to securing funding in this space.

Ensuring plans and strategies are current is no longer just a compliance requirement. It is a baseline expectation for funding competitiveness.

Demonstrating need remains a strong factor in a competitive environment, with recent adverse events providing ample evidence for councils to develop strong cases for measures ranging from shelters to flood warning devices and levees.

Peak’s Grant Office remains available to help councils both prepare for upcoming grants and to apply for current opportunities.

For more information, contactPrincipal Advisor and Manager - Grant Office, Zoe Dark zdark@peakservices.com.au