Welcome wins, but gaps remain for long-term regional growth

Advance Cairns’ 2025-26 State Budget reaction

June 24, 2025 (Cairns) – Advance Cairns today has welcomed several funding commitments in the 2025–26 Queensland Budget, while raising concerns over missed opportunities to fund critical initiatives that would deliver transformative economic growth for Far North Queensland.

As the leading independent economic development and advocacy organisation for the region, Advance Cairns acknowledged the Crisafulli Government’s investment in projects such as the Cairns Marine Precinct, the Cairns Hospital refurbishment, and the new Barron River Bridge.

Advance Cairns CEO Jacinta Reddan said while funding for these priority projects was encouraging, the region needed greater urgency and foresight from government to secure long-term prosperity.

“We are pleased to see that funding has been confirmed for the Cairns Marine Precinct 5000 tonne shiplift after speculation the project would be scrapped due to increase in construction costs.  However, only $38.4 million of a total of combined state and federal funding of $387 million has been allocated this year for further ‘planning and enabling works’.  With several million already spent on planning and design, we urge the Crisafulli Government to release the timeframe for completion of this critical project was originally set for 2028.

“There must be greater urgency given the shifting geopolitical climate, the role the region plays in the hardening of the North, and the strategic value this defence and maritime asset represents,” Ms Reddan said.

“We have long known this project would cost more than originally estimated several years ago and while we are relieved to see it is still earmarked in today’s budget, we are concerned at the apparent lack of understanding of the regional and indeed national importance of the shiplift and therefore the lack of sense of urgency.”

Advance Cairns welcomed funding for the long-awaited Barron River Bridge, a key priority for regional connectivity.

“We commend the State Government’s $245 million investment to deliver a new Barron River Bridge, which will greatly enhance road connectivity from Cairns to the Tablelands and beyond,” Ms Reddan said.

“We particularly acknowledge the strong advocacy of the Member for Barron River, Bree James, in securing this critical infrastructure investment.”

The Budget confirmed a number of key infrastructure allocations for FY25–26, including:

– $38.4 million for the Cairns Marine Precinct Common User Facility (total estimated cost: $387 million, pending further discussions with the Australian Government)

– $166 million of the $390 million to complete Stage 1 of the Cairns Water Security Project (noting that $195 million had previously been committed)

– $67 million of the $181 million for the Cairns Hospital Expansion and Refurbishment

– $6 million to improve water infrastructure in Douglas Shire

– $9 million for continued delivery of the Cooktown Multipurpose Health Service (8 new beds)

– $2 million of the $60 million for the Cairns Health and Innovation Centre (CHIC) Stage 1

– $12.9 million for refurbishment of the Atherton Hospital Ward

– $13.6 million to complete the expansion of the Great Barrier Reef International Marine College

Health funding was a strong feature of the Budget, aligning with Advance Cairns’ long-standing advocacy to build a resilient and future-focused regional hospital network.

“Health infrastructure is critical to the liveability and resilience of our communities,” Ms Reddan said.
“We are particularly pleased to see $67 million allocated to the Cairns Hospital Expansion as part of the broader $181 million commitment. This investment is essential to meet the needs of our growing population.”

Advance Cairns also welcomed the Budget’s focus on housing delivery, which included significant allocations for new builds and upgrades of social housing and homelessness with Cairns receiving an outsized allocation of funds.

“We’re pleased to see $73 million committed to the construction of new social housing, along with $52.6 million to upgrade existing social housing stock—representing nearly one-third of the state’s total housing upgrade investment,” Ms Reddan said.

“This is a strong acknowledgment of the pressure our region faces around housing affordability and availability.”

Coupled with this, Advance Cairns applauded the State Government’s decision to double next year’s allocation of funds in the Residential Activation Fund to $1 billion with the Treasurer personally committing to ensuring the full amount, which supports local governments to fund enabling infrastructure, would be allocated by June 30, next year.

“We look forward to working with Cairns Regional Council and other stakeholders to help secure a strong share of this investment for Far North Queensland and we would hope that an allocation will be directed to support the growth of the Southern corridor.

Despite the progress, Advance Cairns expressed disappointment that funding had not been allocated to the NQ Cowboys Cairns Community Development and High Performance Centre, despite a $15 million Federal Government commitment already being secured.

“This project is a game-changing opportunity for youth engagement, women and girls, Indigenous development, sport, and community health outcomes in our region,” Ms Reddan said.

“We’ll continue to advocate alongside the North Queensland Cowboys to ensure this vital project is realised.”

While funding has been allocated to upgrade the Bruce Highway, however it does not appear to have been allocated for much-needed works in the North and Far North to avoid the road closures the region experienced earlier this year.

Advance Cairns also noted that while $446 million was committed under the Destination 2045 tourism strategy, the Budget failed to outline how much would be allocated to securing new international aviation routes, a critical driver for the region’s visitor economy.

Looking ahead, Advance Cairns will co-host the 2025 State Budget Address on 1 July in partnership with Cairns Chamber of Commerce and Tourism Tropical North Queensland, providing local business and community leaders the opportunity to hear directly from Queensland Treasurer David Janetzki MP.

Keeping you informed