Queensland Removes 15% Affordable Housing Mandate From Fast-Track Developments

The Queensland government removed the 15% affordable housing requirement from State Facilitated Developments on Friday, a change the LNP says will accelerate construction and housing groups say will cut supply for low-income buyers.

Deputy Premier Jarrod Bleijie announced the decision alongside Housing Minister Meaghan Scanlon. The government said the change implements Recommendation 26 of the Queensland Productivity Commission's October 2025 report, which called for faster assessment processes.

The State Facilitated Development scheme allows the state government to fast-track large housing projects by bypassing some council planning processes. Labor introduced the scheme in 2024 with a requirement that developers set aside 15% of dwellings as affordable housing, sold or rented at below-market rates.

Government position

The government said removing the mandate would reduce complexity for developers and encourage more housing construction.

These changes cut red tape and give developers certainty about what they need to deliver.

— Queensland Government ministerial statement

Bleijie said the changes also introduce a requirement for council support before projects receive state approval, which the government described as creating genuine partnerships between state and local government.

Industry response

The Property Council of Australia welcomed the announcement, saying the changes would help address Queensland's housing supply shortage. Executive Director Jess Caire said reducing regulatory burden on developers would encourage more projects to proceed.

The Urban Development Institute of Australia also supported the decision. UDIA Queensland CEO Kirsty Chessher-Brown said the requirement for council support would create a more collaborative approval process than the previous scheme, which allowed the state to override local government objections.

Housing advocates

Q Shelter, Queensland's peak body for housing and homelessness services, said the change risked producing more housing that ordinary buyers cannot afford.

There is a risk that these changes will deliver more market housing that remains out of reach for low and moderate income households.

— Q Shelter statement

Labor's Shadow Treasurer Cameron Dick called the decision a cut to affordable housing supply during a housing crisis.

What the mandate required

Under the original scheme, a 300-unit apartment development approved through the SFD process would have been required to include 45 affordable dwellings. Affordable housing under the scheme meant units sold or rented at approximately 25-30% below median market prices.

In Brisbane terms, that could mean the difference between a two-bedroom apartment at $540,000 and one at around $400,000 for an eligible buyer.

Projects approved under the previous rules will still be required to meet the affordable housing conditions. The change applies to new applications from Friday.

Council approval requirement

The new rules require council support before the state approves SFD projects. Under the previous scheme, the state could approve developments over council objections.

Brisbane, Gold Coast, and Sunshine Coast councils will now have more influence over which projects proceed in their areas.

Housing market context

Queensland added approximately 51,000 people in the year to September 2025. Brisbane's median house price is around $920,000 and the median unit price is approximately $540,000, according to CoreLogic data.

The Queensland Productivity Commission report noted that construction productivity in Australia has fallen 9% since 2018. The commission estimated that maintaining 2018 efficiency levels would have resulted in an additional 77,000 homes completed nationally over that period.

Rental market pressure

Vacancy rates in Greater Brisbane remain below 1%, according to SQM Research data. The median weekly rent for a house in Brisbane is approximately $620, up from $480 three years ago.

Housing advocates argue that removing affordable housing requirements will increase pressure on the rental market, as buyers priced out of ownership compete for limited rental stock.

The government has not announced alternative measures to increase affordable housing supply. The productivity commission report suggested options including density bonuses and inclusionary zoning incentives, but these were not included in Friday's announcement.

Next steps

The changes take effect immediately for new SFD applications. Existing approved projects retain their original conditions including the 15% affordable housing requirement.

The government said it would continue to work with councils and industry on housing supply measures. No timeline was given for any additional affordable housing policies.