Federal budget commits $1.9 billion for North Queensland, its highest regional allocationUpdated

North Queensland has secured $1.9 billion in federal budget commitments — the highest Commonwealth allocation to the region in its history — with defence expansion at Townsville and Cairns, the Haughton Pipeline Stage 2, health infrastructure, and a major new Great Barrier Reef protection fund the largest individual components.

Federal Northern Australia Minister Murray Watt confirmed the commitment was the result of intensive engagement with North Queensland communities over the preceding 18 months, during which the federal government's North Queensland Futures consultation had identified the gaps in Commonwealth investment relative to the region's strategic and economic importance. "We heard loud and clear that North Queensland has been underinvested relative to its importance to Australia's economy, its national security, and its natural heritage," he said.

The defence component of $680 million covers RAAF Base Townsville's expanded infrastructure for the F-35 fleet, Lavarack Barracks' expanded land force facilities, and the HMAS Cairns forward operating base upgrades needed to support the increased naval patrol and maritime security activity in the Coral Sea and Torres Strait. The defence investment will generate 4,200 new positions across the two cities over five years.

Water security funding of $180 million is directed primarily to the Haughton Pipeline Stage 2, with the balance covering water security assessments for Charters Towers, Ayr, and the Burdekin communities that depend on the same river system. Premier Steven Miles welcomed the Commonwealth contribution, noting that North Queensland's water security was fundamental to its agricultural productivity and residential growth potential.

Townsville mayor Jenny Hill said the budget commitment was the most significant for the city since the defence expansion in World War II.

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