Residential Activation Fund Round 2 opens at 10am

Round 2 of the Residential Activation Fund (RAF) opens at 10am today, with announcements of successful projects expected from July 2026. Under Round 2, $500 million in funding is available for trunk and essential infrastructure including water, sewerage, roads, telecommunications, and power with the intent of unlocking housing supply. The RAF was a key Institute recommendation as an urgently needed circuit-breaker to crack the trunk infrastructure funding deadlock.

The Institute’s Queensland and National offices continue to work with government and water and energy utilities to come up with a long term solution which will likely ultimately also involve the state and federal governments.

Members should note that an updated version of the Guidelines and Frequently Asked Questions has been released by the Department. A templated Funding Agreement also remains available on the RAF website.

The Institute held a member briefing on RAF Round 2 on Friday which was attended by over 135 members. Many valuable learnings from Round 1 were discussed. At that event, Deputy Director General, Michael McKee noted the following key points for members to consider when compiling an application:

• The definition of “development approval” has been expanded to include preliminary approval for a residential development (refer to the Glossary in the Program Guidelines)
• The definition of trunk and essential infrastructure has been revised to make it clearer what is meant by trunk infrastructure and essential Infrastructure (refer to the Glossary in the Program Guidelines)
• Construction projects must commence within 12 months of successful announcement of the project, rather than within 12 months of a fully executed funding agreement
  The contingency for construction projects has been reduced to 20% of the estimated total project cost. The contingency will only apply to eligible project costs (refer to section 3.5 Project funding in the Program Guidelines)
• Non-SEQ local governments with approved Round 1 Specific Infrastructure Planning Projects will be given priority for construction project funding under Round 2, subject to satisfying relevant eligibility criteria.

Institute CEO, Kirsty Chessher-Brown welcomed the opening of Round 2 applications.

“RAF has proven to be one of the most practical levers available to government to accelerate housing supply by addressing upfront infrastructure constraints that can otherwise stall viable projects.”

“The refinements made to eligibility criteria reflects industry feedback and will provide greater flexibility for projects ready to proceed.”

“Importantly, the requirement to commence construction within 12 months of project announcement reinforces the importance of our shared objective of getting homes delivered quickly, at a time when Queensland urgently needs additional supply. These settings reinforce the Government’s focus on accelerating project delivery and ensuring funded projects can move swiftly into construction.”

Members are encouraged to review the updated guidelines and eligibility criteria carefully, particularly in relation to timing requirements and infrastructure definitions, and to seek clarification via the RAF Hotline on 07 3452 6882.

More details about the second round are here.