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The Australian Government has announced a new $2 billion Local Infrastructure Fund as part of the 2026–27 Budget. The fund will help local governments and state utilities build essential infrastructure to support new housing.
Eligible projects
Funding will be available for infrastructure that enables new housing, including:
- local roads, footpaths, cycle paths and lighting
- bridges and culverts that provide access to new housing sites
- stormwater and drainage works, including flood mitigation measures
- water and wastewater infrastructure, such as pipes, pumping stations and treatment facilities
- electricity infrastructure, including grid connections, substations and network upgrades
- public transport works, such as bus stops needed to service new housing areas.
When to apply
Applications for the first funding round are expected to open later in 2026. A second round is expected to open in mid‑2027.
Guidelines and supporting information will be released before applications open.
How to apply
Applications will be made through the Business Grants Hub.
More information on the application process, guidelines and supporting material will be available soon.
See further details in the Local Infrastructure Fund fact sheet