Queensland Incentivising Infill Development Fund: Key Considerations for Project Proponents

The housing crisis in Queensland (and Australia) is worsening. The latest attempt by the Queensland Government to stimulate housing construction and meet the ambitious target of one million new homes by 2046 is the introduction of the Incentivising Infill Development Fund (Fund).

Applications under the $350 million fund opened on 10 June 2024. In this article, we explain the objectives of the fund, eligibility criteria and opportunities for proponents to obtain priority in the application process.

Fund objectives

The Fund is intended to support the development of underutilised land within existing urban areas to foster sustainable and efficient land use. The fund provides financial incentives to developers for projects that align with the State’s objectives of increasing housing supply, improving infrastructure and promoting environmentally sustainable practices.

In particular, the fund provides targeted support to eligible projects which:

  • Increased density: deliver increased density in well-located infill areas, supporting housing diversity;
  • Housing choice and affordability: promote housing choice in existing urban areas and contribute to affordable housing outcomes;
  • Policy alignment: complement State, regional and local policy priorities such as place-based statutory regional plans, local housing action plans and other initiatives that provide multiple benefits (for example, housing to support emerging industries);
  • Delivery: can come to market within the period specified under the Fund Guidelines (depending on the nature of the development).

 Eligible development costs

Funding is available for the following development costs:

  • Infrastructure charges: Funding is available for the payment of infrastructure charges for related trunk infrastructure costs levied by an eligible entity, through:
    • an infrastructure charge notice (ICN) for eligible developments;
    • the infrastructure charges cost included in an infrastructure agreement (IA) where the project is an eligible development.

The Fund will only pay the residential development component of the ICN or IA approved under the Fund.  The State will make payments or commit to making payments for the identified value of an ICN or component of an IA directly to the relevant entity.

  • Development assessment fee relief: Funding is also available for providing refunds of development application fees for applications lodged since the announcement of the Fund on 3 February 2024.

Development criteria

Applications may be made by the landowner, development proponent or a representative authorised to represent the landowner (for example, a town planning consultant or development manager).  Development must meet the following criteria:

  • be consistent with the objectives of the Fund; and
  • be in Queensland; and
  • be for a material change of use or reconfiguring a lot; and
  • be well-located residential development (this includes the residential component of a mixed-use development); or
  • be accommodation for workers or tertiary students and new major employment centres such as (but not limited to) tertiary institutions, hospitals and medical precincts, or in high-tourism areas; and
  • be for dwellings other than luxury housing; and
  • at the time of the application for funding being decided:
    • construction for a material change of use has not started;
    • for all other development, the levied charge has not become payable under the Planning Act 2016 (Qld).

There are additional location-based criteria depending on whether the project is located in a ‘Category A local government area’ (mostly metropolitan areas), or ‘Category B local government area’ (mostly regional areas).

All development must be complete and have submitted the payable levied charge to the State for payment by 1 February 2028.


Under the Fund guidelines, priority will be given to projects which:

  • have an existing approval or accepted development that has a demonstrated ability to come to market by 30 June 2025;
  • include affordable housing;
  • include gentle density housing typologies (including small studios, duplexes, row or terrace houses, triplexes or duplexes and multiple dwellings);
  • support a mix of housing types in regional local government areas, to respond to housing needs of emerging industries and sectors.

Successful applicants will be required to enter into a funding agreement with the State and provide further information including a project completion report and risk management plan.

With the right approach, the Fund can be a powerful tool for driving innovative and sustainable urban development in Queensland. However, it is difficult to tell whether the funding available will in fact ‘offset’ high construction costs sufficiently to encourage proponents to pursue residential development and increase the housing supply.

What’s next?

The Queensland Incentivising Infill Development Fund offers a unique opportunity for developers to contribute to solving the housing crisis while benefiting from significant financial incentives. By targeting underutilised urban land, this initiative not only addresses housing shortages but also promotes sustainable development practices.

If you’re a developer or landowner looking to make a meaningful impact and leverage state support for your projects, now is the time to act. Explore the potential of your projects under the Fund and help shape the future of Queensland’s urban landscape. Reach out to Amelia Prokuda to learn how to take advantage of this opportunity and for more information on the application process.