Grants for Local Government Budget 2026: Behind the Headlines

The ‘Supporting Local Government’ 2026-27 factsheet says; ‘The Albanese Labor Government recognises the essential role local government plays in delivering services to all Australians and is delivering record funding to strengthen their capacity. Through this Budget the Australian Government is providing support to local governments through funding for roads, housing and community infrastructure.’

The headline announcements continue to say:

    -$750 million over four years from 2026 for further rounds of the Growing Regions and Thriving Suburbs programs. The commitment expands the program’s proven success in delivering an open, competitive grants process funding capital works for community infrastructure across our regional, rural and remote communities.

    -$2 billion for the Local Infrastructure Fund under the Housing Support Program, to help local governments and state-owned utilities build the critical ‘last mile’ infrastructure needed to support new housing developments.

    -Providing ongoing funding of at least $200m every year under the Safer Local Roads and Infrastructure Program. Building on the initial success of the Active Transport Fund by providing ongoing funding for the program, with $50 million to be made available every year.

Section51 knows that grants and project officers are very keen to get going to access this funding with these great announcements.  So as Section51 is based in Canberra we are able to go behind the headlines and find out the details for you.

The 602 pages of the Department of Infrastructure Portfolio Budget Statement provide the specifics that are not in the headlines or media releases.  On page 51 it is revealed that the Thriving Suburbs and Growing Regions Programs is in the forward estimates beginning in the 2027-28 financial year.

So what does this mean for opening of Thriving Suburbs and Growing Regions Programs? Based on experience we can work backwards on possible time frames.  For round 2 of Growing Regions the time frame was around 10 months from opening through to the funding deed being signed and the first money spent.  If this timeframe is used, then the next rounds as announced in the budget could open anytime in the second half of 2026.

Its time to get ready now, and for this reason Section51 is rolling out new workshops on applying for Thriving Suburbs and Growing Regions Programs Round 3 and the related programs of the Local Infrastructure Fund, Safer Local Roads and Active Transport fund.

Like previous rounds, competition will be fierce.  Section51wrote 5 from 6 successful applications in rounds 1 and 2 and we can provide you with the edge you need to be competitive.  Details on the workshops can be found on our Workshop page.

It is wonderful to see the new opportunities for our hard working grants and project officers in councils across Australia.