Myall Creek Bridge badly needs an overhaul – like much of the Cape’s road infrastructure – but federal funding for work under Stage 3 of the Cape York Region Package is still in limbo. Photo: Cape York Weekly.
The 2026-27 Federal Budget includes some wins for Far North Queensland, but there’s plenty more funding gaps still to fill, particularly when it comes to infrastructure on Cape York Peninsula.
Federal Treasurer Jim Chalmers delivered the budget on Tuesday (12 May) with a focus on withstanding the global oil shock and significant reforms to housing, taxation and healthcare.
There’s no specific mention of funding for Stage 3 of the long-running Cape York Region Package in budget papers, or of Peninsula Development Road (PDR).
There is a general Queensland road funding pool and negotiations have been underway between the State and Federal governments for the $240 million needed for Stage 3.
One key local commitment involves the government chipping in an extra $166.3m to duplicate Cairns Western Arterial Rd between Redlynch Connector Rd and Captain Cook Highway, bringing total funding to $382.3m.
Treasurer Jim Chalmers delivered the Federal Budget this week. Photo: Michelle Kroll.
There’s also $255m outlined for two key city projects in Cairns, with $50m budgeted in 2026-27 for an expansion of the Marine Precinct and construction of a new Central Queensland University campus in the CBD.
The government will also hand over $15m over three years ($5m in 2026-27) to progress the North Queensland Cowboys community, development and high-performance centre at West Barlow Park.
Funding will also back the “progression of the World Heritage listing” for the Cape. $3.1m is allocated for Queensland-wide bids in 2026-27.
Meanwhile, Torres Strait Regional Authority will receive $73.1m in 2026-27 for development planning, resource management and the preservation of Indigenous culture.
When it comes to health initiatives, there’s $5.8m in 2026–27 for the management of Torres Strait/Papua New Guinea cross-border health issues at Queensland Health facilities.
Funding will help reduce bloodborne viruses, such as malaria, and sexually transmissible infections (STIs) in the Torres Strait. Photo: Torres Strait Island Regional Council.
Cape and Torres Health Commissioning Ltd will receive $1m in 2026-27 to continue providing culturally appropriate health services.
There’s also $1m for mosquito control in transport hubs of the Torres Strait Protected Zone and $1.1m to tackle bloodborne viruses and sexually transmissible infections (STIs) in the Torres Strait.
When it comes to the world-renowned Great Barrier Reef, there’s $56.9m over two years from 2026-27 to build on and speed up outcomes under the Reef 2050 Long-term Sustainability Plan. Funding will back community-led restoration work and other activities.
The fight against invasive yellow crazy ants will continue with $5.9m budgeted in 2026-27 and $3.0m in 2027-28 for control in the Far North.
While not specifically Far North funding, $110.8m will be used over two years from 2026-27 to extend the Saving Native Species program and on H5 bird flu preparedness efforts to protect vulnerable flora and fauna.
A funding commitment for preventative health programs in the region will be extended a year and there’s national funding for Indigenous boarding schools, birthing on Country and dialysis services.
General funding includes $229.3m for multipurpose precincts across regional, rural and remote Australia and a $2 billion national Local Infrastructure Fund to help local governments build housing infrastructure.
Federal Leichhardt MP Matt Smith welcomed changes to capital gains tax and negative gearing while in Federal Parliament.
“Changes have to be made and to make changes you have to be courageous. This government is courageous. It saw the problem. Identified a problem that has brewing since I was a child – house prices up, up, up,” he said.
Leichhardt MP Matt Smith speaks about the budget in parliament. Photo: Supplied.
“Looks fantastic on paper, but as the economic rationalists do not see, there is a living cost. A real cost. And that is taking and snatching the hopes and dreams of young Australians.
“This change will boost supply. We’re not saying don’t negatively gear. We’re saying negatively gear, but build the house. Get more housing. Get more people into the housing. Let them rent to start their lives at a reasonable rate so then they can enter the housing market themselves.
The Local Government Association of Queensland (LGAQ) welcomed funding to increase housing investment and development, but warned ongoing funding shortfalls threatened everyday council services.
“Councils need a permanent one per cent share of Commonwealth revenue to ensure their ongoing financial viability,” President Matt Burnett said.
“Without this commitment from the Federal Government, councils will continue to struggle through uncertainty from year to year.”
In the lead-up to the budget, mayors from all of the state’s Indigenous communities, many in Far North Queensland, rallied to see increased investment in local housing to address overcrowding, which has caused significant social issues. They were backed by the entirety of the association.
Mr Burnett said the budget missed another opportunity: “Since the National Partnership Agreement on Remote Indigenous Housing ended in 2018, overcrowding in many of Queensland’s First Nations communities has worsened.
“In the years since, First Nations councils and the LGAQ have repeatedly called for urgent investment to improve liveability in these communities,” he said.
The budget does include $6.3m over three years from 2026-27 for a national peak body to represent Indigenous Australians, as well as $100m more for the Housing Australia Future Fund to improve housing quality in remote First Nations communities.
RDA Tropical North described the budget as encouraging, but said a key issue would be ensuring reforms translated into practical housing delivery outcomes on the ground.
Original Article published by Luke Mortimer on Region Tropical North Queensland.
