Growth Acceleration Fund
More than ever before, there is high demand for diverse and affordable housing options across South East Queensland (SEQ). This demand, driven by strong population growth, is creating pressure for new land to be brought to market in a timely way.
On 9 June 2022, the Queensland Government announced a $50 million Growth Acceleration Fund (GAF). This new fund will support the delivery of essential infrastructure such as roads, water supply, wastewater and stormwater, which is required to unlock land for housing in high-growth areas of SEQ.
Already $15 million from GAF has been allocated to water and wastewater infrastructure that will unlock the delivery of approximately 2500 homes in the new community of Caboolture West.
The remaining $35 million was made available to eligible residential developers and South East Queensland local government applicants through one expression of interest round. GAF funding is in the form of low interest loans and successful projects require a level of upfront contribution from the applicant.
Eight applications were initially received, assessed and prioritised according to alignment with the Growth Acceleration Fund’s objectives. The Queensland Government provisionally approved three projects to commence loan funding negotiations with officers of the department to deliver road upgrades and drainage infrastructure to unlock approximately 3,700 dwellings.
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Frequently asked questions
The delivery of infrastructure is a shared responsibility, and this fund is a collaborative mechanism to bring forward important infrastructure which will help to deliver liveable communities.
GAF aims to address circumstances where local government or developers are not able to independently fund and deliver essential infrastructure required to commence the development. Without targeted investment for essential infrastructure the supply of new land will continue to be constrained in South East Queensland.
The fund is expected to:
- support projects that drive investment and jobs, increase South East Queensland land supply, and address housing availability and affordability.
- proactively influence infrastructure planning, funding and delivery in a coordinated way to ensure GAF essential infrastructure is delivered at the right time, place and purpose for unlocking land or generating housing supply.
- promote collaboration across state and local government, utility providers and development industry to promote a short-term pipeline of residential development that leverages partnerships and investment opportunities for maximum return to the State and growth area communities.
GAF is a three-year program which will be open for one expression of interest round in November 2022.
Funding is expected to be released to successful applicants from 2024.
GAF is a critical government action to achieve the planned outcomes of Shaping SEQ and expedite development of underutilised areas within the South East Queensland Urban Footprint.
The work of the Growth Areas Team, including investigations of the Underutilised Urban Footprint has informed GAF’s design.
Applications will be accepted from eligible South East Queensland local governments and residential developers.
GAF supports ‘shovel ready” projects or projects that can be mobilised for construction soon after funds are committed.
Essential infrastructure projects that will accelerate development within South East Queensland and inside the Urban Footprint identified in Shaping SEQ will be prioritised. In addition, the development location should deliver substantial dwelling supply to the local government area.
Funding is in the form of a concessional loan between the applicant and the Queensland Government, repaid annually for a nominated period up to fifteen years and secured through a legally binding funding agreement and other securities.
The concessional loan will be offered at lower interest rate than what may be found through commercial lenders. Due to current fluctuations a specific interest rate is not available at this time.
Minimum upfront contribution from applicants is ten percent of total project costs, though preference will be given to higher applicant contributions and may be subject to negotiation depending on project risk.
Applicants can apply for up to $10 million from GAF, however the fund is competitive, and applicants will need to demonstrate the requested loan amount provides optimum benefits for GAF.
Funding decisions for infrastructure projects will be made following a two-stage application and assessment process comprised of:
Phase 1 - Expression of Interest (EOI) preliminary assessment. Applications will undergo competitive assessment against eligibility and assessment criteria, the fund’s objective and the project’s ability to achieve GAF outcomes.
Phase 2 - Detailed Evaluation for invited shortlisted projects. In this phase projects are evaluated against merit criteria and through undertaking a detailed Commercial and Financial Evaluation.
Yes. The agreement will set out the Queensland Government's commitment to provide a concessional loan and the applicant’s commitment to expend their contribution prior to receiving funding. The applicant will be responsible for variations in excess of the project budget and provide construction and post construction / maintenance security and facilitate repayment of the investment.
Funding is in the form of a low interest loan, generally repaid annually and secured through legal agreement and other securities.
The government will not be responsible for the delivery of the infrastructure. The delivery will be managed by the successful applicants.
Last updated: 27 Nov 2023