By Sonia Isaacs
SUNSHINE Coast leaders say the Federal Government has again failed to deliver critical infrastructure funding for one of Australia’s fastest-growing regions, despite unveiling major cost-of-living, housing and small business measures in the 2026–27 Budget.
Sunshine Coast Mayor Rosanna Natoli said while the Budget contained welcome support for housing affordability and small businesses, there was no direct funding commitment for key regional priorities including the proposed Wave public transport system.
“As you know, Council advocated hard for some key infrastructure, including funding for stages two and three of the Wave public transport system, support for a business case to upgrade the Bruce Highway to six lanes between Steve Irwin Way and Caloundra Road, as well as a Regional Indoor Community Sports Centre,” Cr Natoli said.
“While we missed out this time and would have liked a stronger commitment to our priority projects, we will continue to champion our region and seek the infrastructure our growing community needs and deserves.”
Cr Natoli said councils continued to face mounting financial pressure despite rapid population growth across regions like the Sunshine Coast.
“It’s important to note that councils receive just three cents in every dollar of taxation revenue, compared to 80 cents for the Australian Government and roughly 17 cents for the State Government,” she said.
Despite concerns over infrastructure funding, Cr Natoli welcomed measures aimed at easing housing pressures, including 97 additional social and affordable homes in the seat of Fisher through the Housing Australia Future Fund.
Federal Member for Fisher Andrew Wallace delivered a far harsher assessment, describing the Budget as “another crushing blow for the Sunshine Coast”.
“There is not a single dollar specifically committed to the critical projects our community desperately needs,” Mr Wallace said.
“This Budget proves once again that the Sunshine Coast is being overlooked and left behind.”
Mr Wallace was particularly critical of proposed changes to negative gearing and capital gains tax concessions, arguing they would increase pressure on renters and investors.
Under the reforms, negative gearing will be restricted to newly built homes from July next year, while existing arrangements will be grandfathered.
The current 50 per cent capital gains tax discount will also be replaced with inflation-adjusted indexation and a minimum 30 per cent tax rate on capital gains and discretionary trusts.
Sunshine Coast economist and University of the Sunshine Coast senior lecturer, Hammad Siddiqi, described the Budget as a “big non-event” overall, but said structural reforms to housing and taxation could reshape the market over time.
“There’s nothing dramatically expansionary because the government’s hands are tied by inflation and interest rates,” Dr Siddiqi said. “However, there are some very significant structural changes underneath the surface, especially around housing and taxation.”
Dr Siddiqi warned the negative gearing reforms may not immediately improve affordability and could reduce the number of established homes available to buyers.
“All this will likely do is push investors into new builds and reduce the number of existing homes coming onto the market,” he said.
“Investors will hold on to negatively geared properties, and that could actually make things worse, not better, for buyers and renters.”
However, he said the capital gains tax reforms could encourage more investment into productive sectors of the economy rather than existing housing stock.“Housing is an unproductive asset compared with a business or factory,” he said.
“If more savings are nudged into productive investment rather than existing homes, over time that can improve productivity and wages.”
The Budget includes $47 billion in housing investment nationally, expanded five per cent deposit schemes for first home buyers, more Medicare spending and a temporary halving of the fuel excise in response to rising global oil prices and instability in the Middle East.
Permanent small business measures including a $20,000 instant asset write-off and provisions allowing businesses to carry back losses to reclaim previously paid tax were also included.
Dr Siddiqi said the measures would provide modest support for small operators across the Sunshine Coast, but warned the broader economic outlook remained uncertain as inflationary pressures and global instability continued to weigh on households and businesses.
