The National Growth Areas Alliance (NGAA) has welcomed the 2026/27 Federal Budget, recognising it as a significant step towards aligning national investment with the outer metropolitan growth areas where the majority of Australia’s future housing and workforce growth will occur.
The Budget includes a landmark $2 billion Local Infrastructure Fund to support housing-enabling infrastructure, investment strongly advocated for by the NGAA. This funding will support critical infrastructure such as roads, water, sewerage and power, helping unlock up to 65,000 new homes across Australia over the next decade.
NGAA Chair Mayor Terresa Lynes said the Budget reflects growing recognition that Australia’s fastest-growing communities must be at the centre of national policy and investment.
While growth area Councils represent just 5% of local government areas nationally, they are expected to deliver 26% of the National Housing Accord target, equivalent to around 300,000 new homes, underscoring their critical role in meeting Australia’s housing supply commitments.
“This $2 billion investment confirms what growth area councils have been saying for years. The biggest barrier to delivering new homes is not planning or demand, it is the lack of basic enabling infrastructure, particularly water and sewer,” said National Growth Areas Alliance Chair, Mayor Terresa Lynes. “This funding shows the Commonwealth has listened to the evidence we have provided and is now responding with a practical solution that targets the real bottlenecks holding housing back in Australia’s fastest growing communities.”
The Budget also reinforces broader investment in infrastructure and liveability across growth areas, including:
• $781 million for Thriving Suburbs programs, to deliver community infrastructure projects
• $500 million for the Active Transport Fund, supporting walking and cycling infrastructure across the country
• $8.6 billion in road and rail infrastructure investments to improve connectivity, productivity and access to jobs.
NGAA CEO Bronwen Clark said these investments demonstrate a welcome shift towards creating complete communities in outer metropolitan areas.
“Growth areas are where Australia’s new jobs, homes and skilled workforce are emerging,” Ms Clark said.
“This Budget moves beyond housing supply alone, recognising that productivity depends on connected communities—with transport, roads, community facilities and services delivered alongside new homes.”
The Alliance also welcomed the Government’s commitment to multicultural communities, including $30 million for Stronger Communities Programme funding for multicultural infrastructure and programs to support increasingly diverse populations in growth areas.
In addition, NGAA acknowledged tax reforms to negative gearing and Capital Gains Tax, which are expected to improve access to home ownership and better align investment toward new housing supply.
Residents in growth areas are also set to benefit from cost-of-living relief measures, including support linked to fuel costs—particularly important for communities with higher reliance on private transport.
Despite the progress, NGAA emphasised that further structural reform is needed to ensure funding reaches the communities that need it most. Where over 6 million people (and counting) are choosing to live and raise their children.
Ms Clark said formal classification of growth areas within national frameworks remains a critical next step.
“Now is the time to formally recognise growth areas as distinct regions in national policy,” Ms Clark said.
“Without this, there is a risk that funding does not consistently reach the high-growth communities driving Australia’s housing supply and economic productivity.”
NGAA reiterated that continued investment in enabling infrastructure, transport and community infrastructure will be essential to ensuring Australia’s growth areas remain liveable, connected and economically productive.
