The Australian Local Government Association (ALGA) has welcomed the Federal Government’s Budget commitment of $2 billion for housing enabling infrastructure.
Tuesday night’s Budget will include an extra $2 billion – including $500 million dedicated to regional Australia – over four years from 2026-27 to fund critical infrastructure and build up to 65,000 new homes.
ALGA President and Gladstone Mayor, Matt Burnett said the announcement demonstrated the Federal Government had listened to councils’ repeated calls for greater investment in the local infrastructure needed to unlock housing supply across Australia.
“This is a very significant investment, and it could not come at a better time,” President Burnett said.
“This commitment recognises that enabling infrastructure has been one of the biggest barriers to increasing housing supply and affordability across Australia.
“It’s a strong sign the Federal Government has heard the concerns local governments have been raising for years. Councils have consistently said you can’t build homes without the roads, drainage, water connections and community infrastructure that make new developments possible and liveable.”
Mayor Burnett said ALGA had been calling for urgent investment in ‘building block’ infrastructure since the 2024 housing release of its report into the national housing crisis.
“The Addressing the Housing Crisis report showed a major shortfall for councils to deliver the enabling infrastructure needed for 1.2 million new homes,” he said.
“For a long time, councils have been warning that communities cannot continue absorbing the costs of growth without additional support.
“The $2 billion for councils and state utility providers in this Budget will provide greater confidence for councils to plan for future growth and to work with state and federal governments to accelerate housing delivery.”
He said the commitment from the Federal Government came at a critical time, with councils continuing to face escalating costs linked to inflation, construction pressures and fuel prices.
“Councils are being hit from multiple directions, with rising costs making it harder to maintain existing infrastructure while also supporting growing communities,” he said.
“This investment acknowledges those pressures and recognises the critical role local government plays in addressing the national housing challenge.”
ALGA said it would continue to work constructively with the Federal Government to ensure infrastructure funding aligns with housing targets and supports long-term affordability.
