What’s happening?
Townsville City Council has backed a revamped policy designed to attract major private developments with lasting benefits for the city. The City Activation and Housing Incentive Policy now includes a Catalytic Development category for large, transformational projects.
Support will be considered on each project’s merits and may include infrastructure charge waivers, rate concessions and cash contributions.
Unlike existing programs, the new category does not set a fixed limit on the incentives Council may provide. Councillors will make the final decision on whether a proposal reaches the catalytic threshold.
Each project will be assessed individually, based on its expected economic, housing, employment and community benefits.
Why it matters?
The policy aims to turn growing private sector interest into developments that move from planning into construction.
Mayor Nick Dametto said delivering major projects in North Queensland often involved greater challenges than in south-east Queensland.
“Townsville is seeing an unprecedented degree of investor interest across the board but converting that to cranes in the sky and shovels in the ground is far more challenging in North Queensland than the south east,” he said.
“Through this new Catalytic Developments category, we’re making it clear to investors that we are open for business in Townsville.
“The message is that if you’re an investor and you’re bringing forward a well-considered project that will benefit the city, you’ll find a Council that’s prepared to have a genuine conversation about how to make it happen.
“We want to see more big-ticket projects built in Townsville, and we’re prepared to do our bit to grow our city to its full potential.”
Local Impact
The new category could help private developers progress projects that create jobs, housing and wider economic activity across Townsville. It may also provide greater confidence for investors considering complex developments that need years of planning and financial commitment.
Townsville businessman and developer Shaun McCarthy welcomed Council’s decision to offer stronger support for major private investment.
McCarthy is seeking to build the Townsville Waterpark, Hotel and Beach Club in the city’s southern reaches.
“This is a welcome move on behalf of Council, indicating the city is willing to work with investors who can prove their projects stack up and also offer long-standing and transformational benefits,” he said.
“Projects of scale like the Townsville Waterpark, Hotel, and Beach Club development we are working towards don’t just happen overnight, they take years of planning, expertise and collaboration across multiple sectors, as well as significant financial commitment and risk.
“The introduction of this new Catalytic Development component appears to recognise that reality, going a long way to give proponents the confidence that there’s a proper pathway to get transformative projects off the ground in Townsville.”
By the Numbers
- Eligible catalytic developments must have a project value of more than $5 million.
- Construction must begin before the middle of 2029 for a project to qualify under the category.
- Housing infrastructure charge waivers are capped at $100,000 for infill housing and $50,000 for new lot creation.
- McCarthy’s proposed waterpark, hotel and beach club development is valued at $550 million.
Zoom In
The category is limited to developer-led projects and does not cover developments delivered directly by state or Commonwealth agencies.
However, projects receiving government funding may still be considered for additional Council support.
To qualify, those projects must deliver housing, jobs or economic growth for Townsville at a significant scale.
The amount and type of assistance will depend on the proposal and its expected long-term contribution to the city.
Zoom Out
Council will continue offering its existing Housing, Improving Building Facades and Townsville City Centre Heritage Adaptive Reuse programs.
The Housing program will now be divided into 1A – Infill Housing and 1B – New Lot Creation. The Catalytic Development category broadens the policy beyond smaller housing and building programs.
It gives Council greater flexibility to support private projects that may provide wider benefits across Townsville.
What To Look For Next?
Developers can now bring major proposals to Council for assessment under the expanded policy. Projects that meet the criteria may receive Council assistance alongside support from other levels of government.
The policy could help more private developments move into construction before the mid-2029 eligibility deadline.
Further details are available through the Council’s Business Grants and Incentives page.
