Purpose and Program Overview

The Residential Activation Fund (RAF) is a Queensland Government initiative established under the Securing Our Housing Foundations Plan. The Fund is designed to accelerate the delivery of critical trunk and essential infrastructure — including water supply, sewerage, stormwater, transport, and higher-order power and telecommunications systems — that is necessary to unlock land supply and enable residential housing development across Queensland. By removing infrastructure bottlenecks, the program ensures that both greenfield and infill housing projects can proceed without delay.

The Queensland Government has committed $2 billion in total funding through the RAF, with a requirement that at least 50 per cent of all monies be invested outside South East Queensland (SEQ), specifically in regional, rural, and remote local government areas. This commitment reflects the government’s objective to address housing supply pressures equitably across the state. As of the time of writing, almost $994 million has been approved for infrastructure projects under Round 1, with Round 2 making available up to a further $500 million.

The Residential Activation Fund is administered by the Department of State Development, Infrastructure and Planning (DSDIP). It forms part of a broader suite of housing initiatives aimed at securing access to housing for Queensland’s growing population. Round 2 specifically targets projects that are construction-ready and capable of immediate commencement, prioritising delivery speed and measurable housing outcomes.

Key Grant Details

• Total fund pool: $2 billion (Queensland Government commitment)
• Round 2 funding available: Up to $500 million
• Round 2 opened: 23 February 2026
• Applications close: 24 April 2026 at 5:00 pm AEST
• Announcements expected: From July 2026
• Eligible applicant types: Queensland local governments; developers and landowners with a registered Australian company and a valid Development Approval for residential development in Queensland
• Co-contributions: Financial co-contributions are not mandatory but are assessed favourably. Applicants must evidence sufficient funding to cover all costs above the grant amount sought
• Location applicability: Queensland only; at least 50% of total RAF funding allocated outside of SEQ
• Application portal: SmartyGrants (via DSDIP)

Priority Sectors

The Residential Activation Fund is not a broad-sector business grant. It is specifically directed at infrastructure that activates residential housing development. The program targets the following infrastructure categories:

• Water supply infrastructure
• Sewerage and wastewater systems
• Stormwater infrastructure
• Transport infrastructure (roads and associated works)
• Higher-order electrical infrastructure (e.g. substations, transmission lines)
• Higher-order telecommunications infrastructure (e.g. fibre networks)

Projects supporting non-residential development only, community facilities (such as libraries, parks, or pools), or temporary infrastructure are explicitly excluded from the program. Applications involving mixed-use developments may be eligible only for the residential component of trunk or essential infrastructure.

Funding Scope

The RAF distributes funding through a competitive application and assessment process. There is no fixed minimum or maximum per application; however, the State may prioritise applications based on geographic spread, the number of applications submitted, and the overall value for money offered by each project.

Round 2 operates under two primary pathways:

• Pathway 1 — Local Governments: Queensland local governments may apply for the construction of trunk and/or essential infrastructure. Non-SEQ local governments may also apply for Specific Infrastructure Planning Projects (SIPPs), which fund detailed design activities only (not construction). SIPPs must commence within three months of a Project Funding Agreement being executed
• Pathway 2 — Developers and Landowners: Companies registered in Australia with a current Development Approval for a residential development in Queensland may apply for construction-stage trunk and/or essential infrastructure projects

Project timelines are subject to the following requirements:

• Construction projects must commence within 12 months of the announcement of a successful project
• Construction projects must be completed within three years of announcement
• SIPPs (non-SEQ local governments only) must commence within three months of a Project Funding Agreement being executed

A contingency of up to 20 per cent of total project expenditure should be included in cost estimates for construction projects. The Fund will not contribute to contingency amounts for SIPPs.

Eligibility Criteria

All applications are subject to a mandatory eligibility assessment before evaluation. The following requirements apply:

Pathway 1 — Local Governments

• Must be a Local Government constituted under the Local Government Act 2009 or the City of Brisbane Act 2010
• The project must be located in Queensland
• The project must be for the trunk and/or essential infrastructure required for residential housing development
• The project must have detailed designs substantially complete for construction applications
• The applicant or consortium member must own the project site or hold a right or consent to access it
• Project must be identified and documented within the Local Government Infrastructure Plan, NetServ Plan, capital works program, or equivalent council budget documentation
• Construction must commence within 12 months of announcement; completion within three years
• For SIPPs: commencement within three months of execution of a Project Funding Agreement

Pathway 2 — Developers and Landowners

• Must be a company registered in Australia
• Must hold a current Development Approval for a residential development in Queensland (not lapsed or expiring within six months)
• The project must be located in Queensland
• Must demonstrate that the infrastructure is trunk and/or essential, e.g. conditioned in a Development Approval or identified in an Infrastructure Agreement
• Applicant must own or have a right of access to the project site
• Construction must commence within 12 months of announcement; completion within three years

General Ineligibility

• Individuals, sole traders, and unincorporated entities
• Incorporated entities not registered as an Australian company
• Entities that are insolvent or under external administration
• Chambers of commerce, regional economic development organisations, and remote area boards
• Queensland or Federal Government agencies, and Economic Development Queensland
• Utility providers (may participate as consortium members only)

Eligible Activities and Expenses

Eligible project costs are those directly related to the delivery of approved trunk and/or essential infrastructure. The following cost categories are considered eligible:

• Reasonable and lawfully permitted construction costs integral to the approved project, including site works, construction labour, and materials
• Construction equipment hire
• Project management costs, including remuneration of technical, professional, and administrative staff directly involved in managing the approved works (excluding executive duties and overhead charges)
• Purchase and installation of fixed plant and equipment required to commission the approved project
• For SIPPs: professional third-party service provider fees for detailed design activities (excluding provider overhead and administrative costs)

The following costs are explicitly ineligible:

• Internal subdivision or preparation of residential lots and construction of dwellings
• Costs for trunk and essential infrastructure associated with non-residential components of mixed-use developments
• Costs incurred before the project start date in the signed Project Funding Agreement
• Costs for design activities (unless part of a non-SEQ SIPP)
• Tendering, financing, legal, and land acquisition costs
• Statutory feesbefore, including infrastructure charges
• Temporary works (except where required to enable completion of the approved project)
• Ongoing operations, maintenance, leasing, or administration costs
• Vehicle purchases and leasing (unless directly required for construction)
• Repayment of existing debts or budget deficits

Assessment Process

Applications are assessed through a competitive process administered by DSDIP. Funding is not guaranteed for any eligible application; selection is based on comparative merit against assessment criteria.

The assessment process comprises the following stages:

• Eligibility confirmation — applications are reviewed to confirm both the applicant and the project meet all mandatory criteria. Only eligible applications proceed to full assessment
• Assessment — DSDIP evaluates each application against published assessment criteria, seeks clarifications if required, undertakes due diligence and probity checks, and may consult with local governments, utility providers, or other Queensland Government agencies
• Selection and recommendation — a committee considers eligible applications against Fund objectives, assessment criteria outcomes, and project risk; a recommendation is made to the Director-General as delegated authority
• Approval — the delegated authority considers committee recommendations and approves projects for funding
• Notification — all applicants are notified in writing of the outcome

Applications for construction projects are assessed against three criteria:

• Project delivery: Construction readiness, evidence of recent costings, organisational capacity and track record, risk management approach, secured funding, and stakeholder engagement
• Addressing demand: Alignment with program objectives, evidence of housing shortage, and demonstration that the absence of infrastructure is a material constraint on housing supply
• Scale of benefit and value for money: Cost per residential lot, impact of funding with and without the grant, and confirmed financial co-contributions (assessed more favourably where co-contributions are confirmed)

For SIPPs, assessment focuses on program alignment, infrastructure constraints, completion of prior planning stages, evidence of recent costings, and delivery capacity.

Prior Round 1 delivery performance may also be considered in the assessment of Round 2 applications, where the applicant has received previous RAF funding.

Recent Program Updates

• Round 2 of the Residential Activation Fund opened on 23 February 2026, with applications closing on 24 April 2026
• Up to $500 million is available under Round 2, distributed through a competitive process
• Round 1 successful non-SEQ local government SIPPs are prioritised for construction funding in Round 2, subject to being substantially complete and meeting the required commencement and completion timeframes
• Applications are submitted through DSDIP’s SmartyGrants portal, using SmartyFile and Multifactor Authentication functions
• Program guidelines have been updated for Round 2; the Department reserves the right to alter guidelines for future rounds based on feedback
• At least $994 million has already been approved under Round 1 to unlock residential land supply across Queensland

Application Tips

Prospective applicants are encouraged to observe the following when preparing a Round 2 submission:

• Review eligibility carefully: Both the applicant organisation and the proposed project must satisfy all mandatory eligibility criteria. Confirmation of eligibility does not guarantee funding
• Prepare supporting documentation early: Construction applications require detailed designs and evidence of costings obtained within the past 12 months (or two years for local governments). Gather these materials before commencing the application
• Demonstrate construction readiness: Applications scoring well under the ‘project delivery’ criterion show that approvals are substantially progressed, resources and materials are available, and delivery within the required timeframes is achievable
• Secure co-contributions where possible: Confirmed financial co-contributions from the applicant or third parties are assessed more favourably. Applicants should document any confirmed contributions clearly in the application
• Align the proposal with housing demand evidence: Applications should clearly describe the local housing shortage, growth pressures, and the specific way in which the proposed infrastructure will unlock housing supply
• Include a robust risk management plan: Applications should include a clear, well-reasoned approach to managing project risks and contingencies, supported by a demonstrated track record on similar projects
• Rank multiple applications: Applicants submitting more than one application must rank them in order of preference and demonstrate the organisational capacity to deliver multiple projects concurrently

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of the Residential Activation Fund and other associated Australian government websites.