Unlock The North - Federal Budget 2025

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Townsville Enterprise pays its deepest respects to Aboriginal and Torres Strait Islander peoples as the traditional custodians of the land in Australia, and recognise their continuing connection to land, water and culture.

We pay respects to Elders past, present and emerging. We acknowledge the stories, traditions and living cultures of Aboriginal and Torres Strait Islander peoples and commit to fostering a culture of learning from and working with First Nations people in the spirit of reconciliation and access to justice.

Foreword

Townsville North Queensland is on the biggest growth trajectory we have seen in more than a decade. The Government of today has the opportunity to shape the future for the generations of tomorrow, ensuring that this region can unlock its full potential.

This special edition of Unlock the North outlines the project and policy priorities for the upcoming 2025 Federal Budget and Election. Elections are a critical time for our region, and as the region’s peak economic development and destination marketing organisation, Townsville Enterprise takes great pride in our role as the respected non-partisan advocate for North Queensland. Leading collaborative engagements and working across the political landscape to stand up for Townsville North Queensland.

As in previous years, our Unlock the North submission brings together significant projects and enablers to deliver a shared vision for the economic prosperity of the region. These projects - we represent the five local government areas of Townsville, Hinchinbrook, Burdekin, Charters Towers and Palm Island - will drive and secure significant growth for the North Queensland region, and all Australians.

As a region we continue to perform as an economic powerhouse for Australia; a successful blend of regional, rural and city industries, leveraging innovation and first-class education facilities to drive sustainable and prosperous outcomes for all.

Over the past year, several ground-breaking public and private investment announcements have elevated Townsville North Queensland’s potential to the global arena.

Our nation’s largest expansion of the electricity network – the CopperString project broke ground earlier this year, and has already unlocked $7.8 billion of investment into renewables and new mining operations. The project continues to attract major global private sector interest and positioning Townsville as Australia’s most liveable green manufacturing city.

The recent defence force posture changes from the Australian Defence Strategic Review will see Townsville emerge as the Army Capital of Australia, enhancing the country’s defence industry and further elevating Townsville’s profile amongst Defence primes. Additionally, several critical mineral refineries will be commissioned in the region over the next five years. Attracting thousands of highly skilled workers and greatly contributing to the nation’s gross domestic/regional product for generations to come.

A historic pipeline of projects valued at over $37 billion has never been stronger, and continued investment into

our key industries demonstrates that this growth has only just begun. Whilst the rest of the world may face economic downturn, the tried and tested resilience of North Queensland ensures a positive economic outlook for our future.

We have a united commitment to improving the region’s liveability and tourism destination offerings. Recently Townsville was announced as one of only a few destinations in the country to become an accredited eco-destination.

The 2025 Special Edition of Unlock the North is divided into the following chapters:

▶ Made in North Queensland

▶ Housing

▶ Workforce Attraction and Liveability

▶ Infrastructure

▶ Immigration

Our region has benefited from Government and private sector support, directing the right investment to strategically establish new industries and infrastructure.

We are driven to secure further investment into our key industries to unlock common-user infrastructure and address growth inhibitors such as housing and workforce/labour shortages, which have never been more important to the region in enabling this growth.

Now is the right time to look to the future, to leverage our region’s enviable renewable resources and skilled workforce to grow new nationally-important industries in green energy, critical minerals refining and processing, and knowledge industries, while dually addressing the challenges faced by North Queenslanders.

As the peak economic development and destination management organisation, we remain true to our purpose of securing the future of Townsville North Queensland and we ask all sides of politics to join us in delivering this mantra.

Claudia Brumme-Smith Townsville Enterprise, CEO
Kevin Gill Townsville Enterprise, Chairman

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Townsville Enterprise, along with Townsville City Council, Burdekin Shire Council, Charters Towers Regional Council, Hinchinbrook Shire Council, the Palm Island Aboriginal Council and the North Queensland business community are committed to securing the future of Townsville North Queensland.

Our role has always been to look ahead, and champion the projects and policies that will deliver economic growth for our region for decades and generations to come. We work to drive our traditional industries like defence, health, education, tourism, and mining to greater heights, while backing innovation and new technology to stay competitive and relevant to national and international markets. In addition, Queensland’s runway towards the 2032 Olympics and Paralympics also provides an ideal opportunity to develop refreshed experiences that support visitors traveling to Townsville North Queensland.

Townsville Enterprise is a

and growing membership-based organisation. We would like to thank our members for their continued support in our efforts to Secure the Future of Townsville North Queensland.

About Townsville North Queensland

POPULATION

243,798

UNEMPLOYMENT RATE:

4.2% (as of June 2024)

LEADING RENEWABLE ENERGY AND GREEN HYDROGEN HUB

$465K (As of June 2024)

Over 300 days of sunshine annually

$37B pipeline of projects, requiring 20,000 new skilled workers in the next 5 years.

MORE THAN

130,000 PEOPLE EMPLOYED

$21B NORTH QUEENSLAND GROSS REGIONAL PRODUCT

World-class health and education Facilities James Cook University and CQ University

Globally recognised marine research facilities at the Australia Institute of Marine Science.

NORTHERN AUSTRALIA’S LARGEST CONTAINER AND GENERAL AUTOMOTIVE PORT

MAJOR HEALTH CARE SERVICES HUB NEW ECONOMY MINERALS PROCESSING AND EXPORT

SPORTS AND EVENTS CAPITAL OF THE NORTH

CopperString Regional Queensland’s Legacy Infrastructure

In 2023, it was announced that the Queensland Government would own and deliver the CopperString project, signaling one of the largest public investments into regional Queensland. This announcement has been met with over $7.8 billion of private sector investment into new energy and mining projects in Northwest Queensland. It has reinvigorated the regional communities along this corridor, which are benefiting from the renewed private and public investment interest into their region. Northwest Queensland now has the opportunity to be at the forefront of the renewables and clean energy outcomes.

Unlock The North Priorities Summary

1. MADE IN NORTH QUEENSLAND - UNLOCKING SOVEREIGN

MANUFACTURING, PRODUCTION, FUTURE FUELS, ENERGY

SECURITY AND CRITICAL SUPPLY CHAINS

PORT EXPANSION PROJECT

TOWNSVILLE EASTERN ACCESS RAIL CORRIDOR

QUEENSLAND’S TRANSMISSION NETWORK

GREEN ENERGY AND FUEL INCENTIVES

FLINDERS HIGHWAY UPGRADES

BRUCE HIGHWAY UPGRADES

DEFENCE: SUPPORTING NORTHERN AUSTRALIA’S FORWARD MOUNTING BASE

2. HOUSING

TOWNSVILLE NORTH QUEENSLAND HOUSING PACKAGE

REGIONAL HOUSING POLICY INCENTIVES

3. WORKFORCE ATTRACTION & LIVEABILITY

TOWNSVILLE WATERFRONT RENEWAL

PALM ISLAND TOURISM MASTERPLAN

MAGNETIC ISLAND KOALA HOSPITAL

PALUMA TO WALLAMAN TRAIL

FUTURE HEALTH AND PROSPERITY

4. INFRASTRUCTURE

TROPIQ- TOWNSVILLE’S TROPICAL INTELLIGENCE AND HEALTH PRECINCT

NQ DEFENCE INDUSTRY PARK

AYR INDUSTRIAL ESTATE SECOND ACCESS REGENAQUA HINCHINBROOK

BIG ROCKS WEIR

ENHANCING THE BURDEKIN RIVER SYSTEM

5. IMMIGRATION

DESIGNATED AREA MIGRATION AGREEMENT (DAMA)

REGIONAL MIGRATION INCENTIVES

1.0 Made in North Queensland

Unlocking sovereign manufacturing, production, fuel and energy security, and critical supply chains

TOWNSVILLE NORTH QUEENSLAND

Townsville North Queensland presents a unique opportunity to centralise sovereign manufacturing, renewable energy generation and transmission, future fuels production, critical minerals mining and processing and defence capability.

RENEWABLE ENERGY GENERATION AND TRANSMISSION

The region has emerged as a renewable energy powerhouse, with construction now officially underway for the CopperString project which will connect the world-class solar and wind resources in North West Queensland to the National Electricity Market. This project will also unlock an estimated $500 billion of untapped critical minerals in the North West Minerals Province (NWMP) and support the supply chains for the manufacturing of low-emissions technology.

DEFENCE

Following the force posture changes stipulated in the Defence Strategic Review, Townsville has recently been promoted as the ‘Capital of Defence’. From 2025 onwards Townsville will be the home of Army’s heavy armoured combat brigade as we all as a key aviation hub with all Apache and Chinook helicopters also operating from Townsville. The significant investment that Defence has made into Townsville has presented a significant opportunity for defence manufacturing to be based in the region to compliment these force posture changes. Our proximity to critical mineral deposits, strong manufacturing base and transportation networks, and access to skilled workforce ensures that we are well-placed to build on the domestic industrial capacity for key defence technologies and capability.

FUTURE FUELS

Future fuels will play an imperative role in improving sovereign capability in the North as well as decarbonising hard-toabate transportation sectors. Domestic fuel security has continued to be highlighted as a strategic vulnerability, with only two sovereign oil refineries left operating in Australia. Recent global conflicts and the pandemic continued to expose the fragility of Australia’s domestic fuel supply chains. This is also coupled with an increased demand for fuel as a result of growing military operations in the North with the expected force posture changes and the construction of new training areas for Army. Despite this, our fuel reserves have not met the International Energy Agency’s 90-day minimum requirements since 2012. In response to these challenges, North Queensland is positioning itself as a hub for future fuel production and distribution.

Plans have been announced for the construction of Australia’s first Sustainable Aviation Fuel (SAF) and renewable diesel production facility by Jet Zero Australia, with guaranteed offtake already secured through partnerships with Qantas and Airbus. Whilst offtake has primarily been committed to the commercial aviation sector at this stage in the project, the colocation of significant Army Aviation works and maintenance also presents an important opportunity for the region. Emerging opportunities such as hydrogen fuel production will also play an important role in addressing the fuel and energy needs for the regional economy more broadly. There are plans for a renewable hydrogen production facility to be constructed at the Lansdown Eco-Industrial Precinct, with 300 tonnes earmarked for domestic use and an additional 150,000 tonnes for export. Another important aspect of the North’s energy and fuel production potential includes the plans for the construction of $1.7 billion methanol manufacturing plant which is expected to produce 400,000 tonnes of green methanol. ABEL Energy is seeking to export green methanol through the Port of Townsville and provide green bunkering facilities on Port land. This will have a significant impact on both reducing the carbon footprint of the North’s marine shipping and cruise industry but will also provide important fuel bunkering services which the Port has previously been unable to provide.

CRITICAL MINERALS EXTRACTION AND PROCESSING

The North West Minerals Province (NWMP) in Northern Australia presents significant opportunities to boost both Australia’s manufacturing capacity and its transition to a low-carbon economy. Estimated to contain $500B in untapped critical minerals like vanadium, cobalt, copper, and rare earth elements, the NWMP is poised to become a key supplier for the global shift toward renewable energy and electric vehicle production. By harnessing these resources, Australia can enhance its sovereign manufacturing, reduce reliance on foreign imports, and drive the development of decarbonisation technologies, such as batteries, renewable energy storage, and EV components. Investment in the NWMP will support local manufacturing, create high-skilled jobs, and build a resilient, low-carbon supply chain, positioning Northern Australia as a global leader in clean energy and technology. This will strengthen national sovereignty by ensuring critical supply chains are maintained domestically while contributing to global decarbonisation efforts.

1.1 Port Expansion Project

TOWNSVILLE PORT EXPANSION OUTER HARBOUR DEVELOPMENT

Australia’s largest exporter of base minerals, sugar and fertiliser, and Northern Australia’s largest container and automotive port –the Port of Townsville is on a trajectory that will see its annual trade triple to 30 million tonnes per annum by 2050.

The Port handles more than 30 commodities and provides dedicated Defence and cruise facilities, making it one of Australia’s most diverse ports and a keystone of the North’s economic prosperity. Timely completion of the Port’s 30-year $1.6 billion Townsville Port Expansion is critical to facilitating competitive port services for the region’s existing industries and ensuring the success of new projects in critical minerals, mining and processing, advanced manufacturing, renewable energy transmission and generation, agriculture, tourism and Defence. Without expansion, the Port is at certain risk of trade demand outstripping Port capacity.

The $690 million Townsville Port Expansion – Outer Harbour Development will give proponents across the North the certainty needed to advance major export and service projects that will benefit every North Queenslander through facilitation of trade, job creation, economic prosperity, liveability and climate change action.

BACKGROUND

The $1.6 billion Townsville Port Expansion will see the critical development of six new berths and associated infrastructure at the Townsville Port, thereby facilitating $700 billion in economic value from 2020-2050.

STAGE 1 - CHANNEL UPGRADE PROJECT: NEARING COMPLETION

The $251 million Channel Upgrade project includes widening the shipping channels and a new 62-hectare port land reclamation area.

This stage of the Townsville Port Expansion will enable port access for larger commercial, cruise and Defence vessels (up to 300m long) that would otherwise bypass Townsville. The project allows for more competitive shipping services, greater efficiency in supply chains, reduced traffic on Queensland’s road and rail infrastructure, and further environmental benefits achieved through a reduction in freight movements.

Dredging works were completed in March 2024, with land reclamation works on track for completion in November 2024.

STAGE 2 - OUTER HARBOUR DEVELOPMENT: SEEKING INVESTMENT

Rapid momentum in existing and new industries in the North Queensland region is accelerating the need to mobilise Stage 2.

The $690 million Townsville Port Expansion –Outer Harbour Development involves:

▶ Construction of two common-user berths

▶ Construction of seawalls to create a 90-hectare reclamation area to receive capital dredge material wharves and associated backing land

▶ Dredging of berth pocks and approaches

▶ Construction of trunk infrastructure, services and utilities. Once funding is secured, the Outer Harbour Development can be delivered over a five year period from 2025 to 2030, meeting the timeframes required by customers investing into generational critical minerals and renewable energy projects across the North and North West corridor. Together, Stages 1 and 2 will provide the full 152-hectare footprint of the Townsville Port Expansion allowing for all future berth developments.

The Port of Townsville is investigating future port capacity requirements with a number of proponents that anticipate a need for onsite Port infrastructure in the coming years. Future stages of the Townsville Port Expansion will be determined by commercial readiness and suitability. By completing the Outer Harbour Development while these projects advance, the Port can ensure it is ready to accommodate its customers needs without delay.

The $690 million Townsville Port Expansion – Outer Harbour Development will give proponents across North and North West Queensland the certainty needed to advance major export and service projects that will benefit the region through facilitation of trade, job creation, economic prosperity, liveability and climate change action.

BENEFITS

Creates common user port capacity to facilitate trades and industries aligned with State and Federal priorities including renewable energy project cargo imports, renewable energy exports (green methanol, sustainable aviation fuel, biofuel), critical minerals and advanced manufacturing exports and more. Increases transport and supply chain capabilities in the North and North West Queensland region necessary to unlock critical minerals deposits worth an estimated $500 billion, and support the development of over 25 GW of renewable energy projects. Enables the $36 billion pipeline of Commonwealth, State and private investments in the region to proceed.

Enables the Port to continue to expand capacity within the Port Expansion footprint in a timely manner in the future as new industries grow.

Alleviates constraints on existing common user berths and improves the efficient movement of freight to enable economic growth of North and North West Queensland. Provides flexibility to rapidly support the Royal Australian Navy’s force projection ambitions in North Queensland in step with the Australian Government’s 2023 Defence Strategic Review.

STATUS

Commencement of the Outer Harbour Development is vital for meeting the import and export timeframes for the $36 billion pipeline of nationally significant projects in North and North West Queensland.

The full Townsville Port Expansion has been through rigorous environmental impact assessments by both the Queensland and Federal Governments. This provides certainty that the environmental impacts have been fully considered and will be controlled through conditions on development.

The Environmental Impact Statement (EIS) for the Townsville Port Expansion was assessed and approved with conditions by both the Queensland Government (2017) and the Federal Government (2018) enabling the Outer Harbour Development to commence construction at the earliest opportunity.

Stage 1 of the Port Expansion ($251 million Channel Upgrade Project) was funded through the Townsville City Deal, with contributions from the Queensland Government ($105 million), Federal Government ($75 million) and the Port of Townsville ($71 million).

WE ARE CALLING FOR

▶ $450 million Federal Government investment to fund the Townsville Port Expansion- Outer Harbour Development through the construction of 2 x common-user berths and infrastructure.

1.2 Townsville Eastern Access Rail Corridor

Strengthening and growing Northern Australia’s supply chain

BACKGROUND

The Townsville Eastern Access Rail Corridor (TEARC) is intrinsically linked to the Townsville Port Expansion Project. TEARC has been in planning for over 15 years. First identified along with the Townsville Port Access Road, the rail corridor has long been identified as the critical piece of infrastructure needed to improve rail access into the Port of Townsville and support a more efficient rail infrastructure layout within the Port precinct, relieving a known bottleneck. More importantly, TEARC will remove significant rail freight movements out of the Townsville CBD, providing further opportunities to enhance Townsville’s liveability appeal and further develop the Queensland Country Bank Stadium and proposed exhibition and events precinct.

The Queensland Government has confirmed TEARC is a required future strategic infrastructure project for North Queensland. In 2017, as part of the Townsville City Deal, the state and federal government committed to the delivery of a business case for TEARC and an assessment of innovative financing models to fund the project. In November 2017, the Queensland Government finalised the business case confirming that TEARC is a required future strategic infrastructure investment needed to ensure the future growth of the North Queensland region. The business case identified that, at that time, the project was not economically viable, however future developments including stage one of the Townsville Port Expansion Project and other future developments would trigger a need to revisit the project.

STATUS

The time has come to review the business case and commit to developing TEARC. The 2017 Business Case confirmed the need for TEARC and the requirement to preserve the land corridor identified for the project. The Queensland Government has committed funding to acquire the land required. In the six years since the original business case in 2017, additional development has occurred that was not considered in the business case. These critical developments include:

▶ The delivery of the CopperString project, scheduled to commence in April 2024 which will trigger significant

new development in the North West Minerals Province as well as the Hughenden Renewable Energy Precinct

▶ The Queensland Government’s commitment to the development of a critical minerals industry which will see the future development of mining operations in and around the Richmond and Julia Creek region

▶ The development of the Lansdown Eco-Industrial Precinct and the proposed development of two major minerals refining projects

▶ The development and operation of the Queensland Country Bank Stadium and the community’s desire for this precinct to be further developed into a major events and exhibition hub.

Importantly, even without these developments, the business case identified that, without TEARC, the current southern road access into Townsville would have difficulty servicing the expected residential traffic demand by 2027 and would be completely unable to meet expected traffic demand by 2036, highlighting the critical importance of TEARC from both an economic and social point of view. Increasing demand from further critical minerals developments will be best supported by an efficient rail freight connetion to the Port. It is critical that all levels of government now recommit to updating the business case and commit to the delivery of TEARC.

WE ARE CALLING FOR

▶ In June 2024, the State Government responded to the calls to revisit the TEARC business case and committed $2M to funding the review.

▶ Federal Government funding to deliver TEARC, subject to the outcomes of the business case.

TEARC will not only support the growth of industries like mining but will also strengthen the region’s economic resilience by streamlining logistics and ensuring competitive access to global markets.

1.3 Queensland’s Transmission Network

Future-proofing regional Queensland’s backbone energy transmission network.

BACKGROUND

North Queensland is emerging as a leader in the generation and transmission of renewable energy to National Electricity Market. Construction is underway for the CopperString transmission project which will unlock the abundant solar and wind resources of North West Queensland.

It is estimated that the full potential of renewable energy generation in this region could exceed over 33GW of potential, this is a significant output that would meet and exceed even the highest growth models for industry, commercial and residential energy demand in North Queensland. Therefore, transmission of excess energy supply into southern markets through the National Electricity Market (NEM) will be imperative in meeting the Renewable Energy targets for Australia.

CHALLENGES

The CopperString transmission network has been designed to support both the existing and future renewable energy outputs. The transmission line has been upgraded to a 500 kilovolt (kV) along the Eastern alignment of the project. The existing coastal transmission line between Gladstone and Townsville is a 275 kV system and will be unable to support the large amount power which will needed to be transported to load centres in South-east and Central Queensland. The transmission network extending north from Gladstone to Townsville will require either upgraded or new backbone infrastructure to be built to support the energy requirements. Even with the upgrades scheduled as part of the Queensland Energy and Jobs Plan to develop high capacity, high-voltage backbone of network. This configuration does not provide full redundancy and reliability under operational conditions.

WE ARE CALLING FOR
▶ Investment from the rewiring the Nation fund into supporting transmission line upgrades between Gladstone and Townsville to support network upgrades.

1.4 Green Energy and Fuel Incentives

Increasing energy demand to support industry growth

BACKGROUND

Townsville North Queensland has laid its foundations in heavy industry, and our path forward is clear with the emerging opportunities in green manufacturing, renewables and future fuels. There are currently two major refineries operating in the region including Glencore’s Copper Refinery and Sun Metals Zinc Refinery. As major ASX-listed companies, they have both demonstrated a commitment to decarbonising their operations and transitioning to renewable energy where possible. Additionally, there are proposals for an additional five new refineries and processing facilities to be developed in the region, to capitalise on the cities close proximity to critical minerals deposits. These refineries will generate substantial demand for energy, which could be supported through the large-scale renewable energy generation.

FUTURE FUELS PRODUCTION

Townsville will be the home of Australia’s first sustainable aviation fuel (SAF) production facility that will provide the aviation sector the first low-emissions fuel resource. The largest export from the agricultural regions of the Burdekin and Hinchinbrook provides significant biomass availability that will act as the key input for these biofuels.

Additionally, energy company ABEL Energy have proposed plans to build a green methanol production facility that will look to produce over 300,000 tonnes of green methanol annually. Green methanol will be critically for replacing diesel and nonrenewable fuels from the shipping industry, which will significantly reduce the emissions from the carbon-intensive industry.

RENEWABLE HYDROGEN HUB

In February of 2024, the Federal Government provided funding support of $137 million to establish a Green Energy Hydrogen Hub in Townsville. The project proponents- Edify Energy and Siemens Energy, were supported by the North Queensland Hydrogen Consortium, James Cook University, Townsville City Council and the Australian Institute of Marine Science in their application. This project represents the biggest green hydrogen installation in the North and will support North Queensland’s endeavours to support the national energy transition. We are now working on a program of concessions to support this enormous opportunity for the region, the state and the country. These concessions will support the use of existing spare capacity in our network infrastructure to support industry in these crucial early stages of development. This will significantly lower the cost of hydrogen and incentivise

the investment at scale to reduce costs even further. By limiting the concessions to parts of the network with existing capacity, this mechanism will support the hydrogen industry to grow, while minimising impacts on other consumers.

WE ARE CALLING FOR

Renewable Energy Investment:

▶ Investment from the Capacity Investment Scheme to support renewable energy projects in North Queensland, to utilise the abundance of wind and solar resources and ensure that demand can be met for emerging future fuels projects.

Sustainable Aviation Fuel:

▶ Financial incentives to establish the Australian industry

▶ Demand incentives, including commitment from government to using SAF for government-operated and military aviation fleets

▶ Introduction of a Contracts for Difference (CfD) mechanism that would enable the Government to stabilise SAF prices, reducing revenue uncertainty for SAF producers and supporting the sectors viability.

▶ Government mandate requiring industry to use at least 10% renewable fuels in aviation and maritime transport operations.

Renewable Hydrogen:

▶ Australian production incentives equivalent to fuel tax credits on diesel

▶ Demand incentives, including transition of public transport fleets owned, contracted or subsidised by the Government or council.

▶ Identify long-term government supply contracts and government contracts that can peel back as private domestic offtake increases.

▶ Introduce a Contracts for Difference (CfD) scheme to subsidise the difference between the price of green hydrogen and grey hydrogen made from unabated natural gas or coal. Ensure the producers are compensated for the difference between the target price (based on the estimated cost of production and operations for the whole supply chain) and the reference price (what end-users pay for the products).

▶ Adopt a Build-Transfer Lease Model for the construction of common-user infrastructure that is required for the development of the hydrogen industry. This would see the private sector build the infrastructure, transfer ownership to the government and then proceed to lease the infrastructure back from the government over a 30 or 50-year period.

1.5 Flinders Highway Upgrade

Investing in Northern Australia’s highway networks

BACKGROUND

The Flinders Highway is a critical arterial network that connects Northern Australia to the coastal trade networks and is one of Australia’s most vital national economic freight routes. The highway extends over 800km from Townsville to Cloncurry and then connects into the Barkly Highway connecting Queensland’s to the bordering Northern Territory. The traffic along this freight is expected to significantly increase over the next five years, as more renewable energy, critical minerals and defence operations in the North West region begin to ramp up. Townsville Enterprise has been a long-term advocate for upgrading the Flinders Highway, which currently falls short of meeting current needs, causing unnecessary damage to vehicles and poses significant risks to the safety and lives of its users.

CHALLENGE

The Flinders Highway supports nearly $15 billion worth of mining and cattle input annually. Construction activity along this corridor will exponentially increase, with the highway becoming a major thoroughfare for wind turbines, solar panels and transmission tower components for CopperString. The increased activity will further degrade the already poor condition of the highway, presenting an increased risk to the productivity of the region and a threat to the safety of those travelling along this route.

REINFORCING NORTHERN LINES OF COMMUNICATIONS

The Flinders Highway is strategically valuable transport link that connects the East coast of Australia to the Northern territory. With the relocation of the 3rd Brigade and the 16th Brigade, Townsville has emerged as the Capital of Defence. The Flinders Highway is a corridor of strategic importance as it connect Townsville to the next closest Defence base in Northern Australia, located in Darwin. The risk of not investing into the critical maintenance and upgrade works will be dire and will result in serious implications for supply chain movements, transport and communication exercises between two of the largest defence bases in Australia.

WE ARE CALLING FOR

▶ The Federal Government to work in conjunction with the Queensland State Government to fund Flinders Highway upgrades to accommodate the anticipated surge in critical mineral activities, CopperString, renewable energy projects and defence.

1.6 Bruce Highway Upgrade

Investing in Northern Australia’s highway networks

BACKGROUND

The Bruce Highway is one of the longest highway networks in the world spanning over 1,600 kms across the coastline of Queensland. It supports billions of dollars annually in economic activity and is the backbone of the State of Queensland. The extent of this highway network has meant that upgrades and maintenance of this highway is extremely costly and is incredibly important to support. To forego maintenance of this vitally important asset means risking the lives of the thousands of people travelling along the Bruce every day.

CHALLENGE

The Bruce Highway is notorious for being one of the most dangerous highways in Australia. At least 39 people have been killed on the Bruce Highway in the last 12 months. According to research conducted by RACQ, motorists are between three and five times more likely to die on the road than in crashed on the Pacific Motorway or Hume Motorway.

Data from RACQ Crash Reports (2024) has shown that the stretch of the Bruce Highway which extends from Bowen to Home Hill has received the worst safety rating amongst the country. This is due to inadequacies in the road with insufficient overtaking lanes, narrow bridges and road defects.

RESILIENCE

Another emerging challenge for road infrastructure is the growing need to adapt to extreme weather conditions. The state of Queensland is prone to severe weather events from bushfires, floods, cyclones and severe storms, all of which are increasing in intensity as the impacts of climate change accelerate. The extreme weather events have continued to exacerbate the weaknesses within the Bruce Highway, highlighting its vulnerability to sweeping road closures, erosion and dangerous driving conditions.

The current Burdekin River Crossing on the Bruce Hwy is fast becoming a capacity constraint to development of Northern Queensland and a risk to national security. An accident or accident risks the productivity of the region and, as we saw with the weather event that closed the Fitzroy River Crossing in WA, critical infrastructure along major highways can shut down land transport and cause huge increases to regional prices for

goods, drastically driving up the cost of living. The Burdekin Crossing is a priority for the region, and for the country.

WE ARE CALLING FOR

▶ The Federal Government to reinstate the 80:20 funding split with the Queensland Government and address urgent upgrades for safety infrastructure.

▶ We are calling on the Federal Government to assist the State Government with scoping the feasibility for a future upgrade of the Burdekin River Crossing.

1.7 Defence

BACKGROUND

The release of the Defence Strategic Review and subsequent National Defence Strategy placed Townsville North Queensland as the ‘Defence Capital’ of Australia and home to the largest Army base in the country. As a strategic mounting base and host city to unrivalled force projection capabilities, Townsville is unique among Australian Defence locations.

Land. Townsville is the home of the 3rd Amphibious Armoured Brigade, Australia’s most powerful, protected, and lethal fighting formation responsible for the majority of Army’s heavy combat vehicles including its new and mighty M1A2 SepV3 Abrams Tank, the K9 self-propelled howitzer, the Redback Infantry Fighting Vehicle, and the Boxer Combat Reconnaissance Vehicle. The region also hosts some of the premier training areas for the ADF, including the Townsville Field Training Area in the Charters Towers region and the Tully Training Area in Hinchinbrook Shire.

Maritime. The DSR directed Army to shift its focus to littoral and amphibious operations, accelerating the purchase of Army watercraft and directing the development of a new surface fleet plan for the Royal Australian Navy. These vessels—both Army and Navy—will significantly increase the number of maritime platforms that use Townsville for training, maintenance and potentially basing. With the bulk of Army’s combat power located in Townsville, ensuring the Port of Townsville has suitable facilities to dock, load, and unload these platforms is critical to Australian national security.

Air. In response to the DSR, Army restructured its Army Aviation Command to rebalance its rotary wing fleet. As a result, all of the Army’s medium lift CH-47F Chinooks and the entire fleet of potent AH-64E Guardians will be based at RAAF Townsville, along with the headquarters of the 16th Aviation Brigade. This will consolidate the training, operation, and maintenance of these platforms into a single location for the first time. The Royal Australian Air Force is also increasing its use of RAAF Townsville with a large development of infrastructure to support more and longer deployments of RAAF aircraft.

STATUS

The increase in Defence presence will result in an increase of personnel by at least 500 members, many with families accompanying them. This places increased pressure on housing and city infrastructure as a direct result of the increase in service personnel, further exacerbated by the additional civilian workers who will support and maintain the ADF equipment.

The support to ADF platforms—land, maritime, and air—is best provided by local providers. Defence has historically attempted to reduce the cost of ownership of its technical and expensive platforms, and through a local maintenance and supply system, these costs are reduced for the ADF while concurrently supporting the local economy that hosts and supports them.

Townsville North Queensland stands ready to support Defence’s increased presence and weight in the region. As the nexus point for armoured amphibious capability and the maritime platforms that will carry these vehicles, the Port of Townsville is the logical and efficient choice for maintaining Army’s new watercraft. Investments in port facilities will ensure that these vessels are seaworthy and reduce the cost of ownership through the system lifecycle.

A similar saving will be achieved through ensuring the maintenance and supply chains for the Army’s armoured vehicles remains in Townsville. Further efficiencies are possible if the Systems Project Offices that support these highly technical and expensive fleets—including Army’s aircraft—are co-located with the vehicles’ home base. With an operational, maintenance, supply, and sustainment workforce all resident in Townsville, Army will be best positioned to deploy and employ its potent combat force whenever, and wherever, it is required.

This nexus of platform and support will be a drawcard for Defence industry, including test and evaluation, simulation, and innovation. The proximity of TropiQ and the world-leading research capabilities of JCU ensure that Defence Industry can develop, test, and manufacture sovereign capabilities in

the same location as its end users. Additionally, the North Queensland region is representative of the ADF’s primary operating environment, ensuring that equipment is fit for purpose and capable of withstanding the rigours of combat. The juncture of technology and geography is unique to Townsville and represents an opportunity for Defence to realise.

Defence has recently released its pathway to decreasing its carbon footprint, and nowhere stands more prepared to support the Defence Energy Strategy than Townsville North Queensland. The region is on the cusp of a boom in renewable energy for land, maritime and aviation platforms. This regional capability will provide sovereign security for Defence and ensure resilient supply chains while achieving progress towards net zero. Townsville North Queensland is again unique in the confluence of short supply chains, resilient sovereign energy production and strong support to strategic requirements.

▶ Maintenance for Army’s new watercraft to be based in Townsville

▶ Local maintenance for Army’s armoured vehicles

▶ Co-location of the Systems Program Offices that support Chinooks, Apaches and armoured vehicles with the platforms in Townsville

▶ Investment in improved test, evaluations and simulation to support defence industry and innovation in North Queensland

▶ Investment in fuel security, storage and resilience in North Queensland to support mounting and force projection

▶ Investment in logistics infrastructure (especially roads & warehousing) to enable force concentration and projection from Townsville

▶ Investment in alternative fuels to support Defence training and secure sovereign fuel supplies while transitioning Defence to Net Zero

WE ARE CALLING FOR

2.0

Housing

Townsville North Queensland faces a major housing shortage epidemic that could threaten the $36 billion investment pipeline for the region. Across all five major local government agencies housing vacancy rates have remained consistently below 1% and approvals for new residential dwellings is stagnating. Regional Queensland faces unique challenges in addressing the housing shortage, as a result of the increased costs associated with these project driving developers back to major metropolitan cities. Townsville North Queensland requires immediate investment support from the to meet the growing demand and support regional prosperity.

2.1 Townsville North Queensland Housing Package

Unlocking up to 5,770 new homes for Regional Queensland

BACKGROUND

The delivery of essential trunk infrastructure, such as road, sewer, and water systems, to support the development of housing is absolutely critical to the future prosperity of North Queensland.

Townsville’s housing vacancy rate has remained at or below approximately 1% since 2020. Townsville is in critical need of residential dwellings to begin to ease the housing crisis. As the population grows, so too will the demands placed upon critical social services, particularly health and education. With an infrastructure project pipeline in excess of $36 billion, that will require over 20,000 additional workers in the next five years, unlocking new housing supply is required immediately.

CHALLENGES

Delivery of trunk infrastructure is essential to the development of housing. However, Townsville City Council does not have the financial capacity to fund trunk infrastructure at a rate that supports housing demand without significantly increasing rates, causing further cost-of- living pressures for Townsville residents.

INFRASTRUCTURE PRIORITIES

Townsville City Council’s ability to fast-track the identified residential trunk infrastructure projects will greatly support the delivery of housing:

▶ TropiQ Precinct - 370 residential lots

▶ Liberty Drive Extension – 384 residential lots

▶ Bayswater Road Extension – 600 residential lots

▶ Lionel Turner Drive Extension – 1,116 residential lots

▶ North Rail Yards – Up to 300 residential apartments

▶ Svensson Road Intersection - Up to 3,000 residential lots

TROPIQ PRECINCT- TOWNSVILLE’S LEADING INNOVATION PRECINCT FOR HEALTH, EDUCATION, RESEARCH AND ADVANCED TECHNOLOGIES

TropiQ is experiencing significant growth via the expansion programs of its key institutional partners, and pending Government funding and support. This precinct is poised to deliver a range of third-party developments exceeding $1 billion in overall value, including:

▶ Retirement living, aged care and childcare facilities.

▶ Primary school and university-linked high school.

▶ Private hospital.

▶ Hotel accommodation.

▶ Purpose-built industry-led facilities (e.g. NQ SPARK).

▶ Mixed-density residential housing for ~10,000 people.

TropiQ is already attracting new industry investment, however proactive government investment into enabling trunk infrastructure will unlock the precinct in its entirety enabling over $1 billion in key social infrastructure projects, including mixed-density residential housing for up to 10,000 residents.

REGIONAL BENEFIT

Establishing affordable housing stock within the Townsville North Queensland region will:

▶ Provide housing stock for critical workers, social housing and Defence personnel.

▶ Accommodate a range of housing stock for students, aged care and retirement living.

▶ Support expansion and growth of industries in the North

▶ Create jobs, economic growth and better community outcomes

▶ Safeguard the region’s $36 billion infrastructure project pipeline by addressing the region’s key challenges in workforce attraction..

REINSURANCE POOL

Access to affordable and available insurance is critical enabler for both economic growth and building resilient communities in regional Queensland.

Townsville Enterprise has continued to provide feedback on the Federals Government’s Reinsurance Pool that was introduced in 2022 to ensure that the scheme is both fit-for-purpose and addresses the inadequacies of insurance in North Queensland. Unfortunately, Strata insurance continues to be a major barrier to addressing the significant challenges of the housing crisis, with the obvious solution being to develop high-density apartments and accomodation. Even with the Reinsurance Pool operating in the region for over a year, there has been little reduction in the extremely high strata prices offered to consumers. As a compulsory product, strata insurance will continue to be a major barrier for any new apartment/residential accomodation product proposed for North Queensland.

CYCLONE TESTING STATION

The James Cook University (JCU) Cyclone Testing Station was established in response to the devastation caused by Cyclones Althea (1971) and Tracy (1974). Operating since November 1977, the Cyclone Testing Station aims to support the building industry by understanding the wind effects on low-rise buildings and providing independent testing for building products.

With the constant threat of cyclones in Northern Australia, insurance premiums are growing. Premiums in the north are significantly higher than the rest of Australia across home and contents, strata and business enterprises. This cost escalation reflects the heightened risk of damage, and as cyclones become more severe, the insurance companies will continue to adjust premiums, further exacerbating the cost-of-living crisis.

There is an urgent need to undertake additional proactive measures, through large-scale research at JCU’s Cyclone Testing Station.

WE ARE CALLING FOR

HOUSING INVESTMENT

▶ $68 million for the Townsville North Queensland housing package to be invested into the delivery of essential trunk infrastructure that will fast track and unlock the delivery of up to 5,770 residential lots.

▶ Commitment of $50 million to enable progression of a high-density build-to-rent housing development in Townsville CBD.

HOUSING POLICY

▶ Quarantine 40% of the Housing Australia Future Fund (HAFF) facility for regional Australia. Under current model HAFF is poorly suited to regions due to limitations in access to tier 1 developers.

REINSURANCE POOL

▶ Enhanced data transparency by reinforcing the transparency of data requests to the ACCC for consumers to foster trust and understanding.

▶ Long-term Resilience Mitigation Action Plans- Develop and implement long-term resilience action plans, including:

1. Investment in mitigation infrastructure in collaboration with local councils.

2. Grants for property owners to enhance the safety of their dwellings.

3. Strengthening building codes and improving disaster management planning.

4. Removal of unfair taxes and charges from insurance policies by Governments.

CYCLONE TESTING STATION

▶ $20 million in capital funding to replace the JCU Cyclone Testing Station with contemporary facilities to continue and expand research into cyclones and storms. This investment will continue its important work to improve the resilience of buildings to severe weather events and the stress of day-to-day climate.

2.2

Additional Regional Housing Policy Incentives

Townsville North Queensland’s regional and rural communities have also been strongly impacted by the housing shortage. The impact on regional communities is far more acute and economically debilitating compared to other metropolitan cities also experiencing a decline in housing availability. The housing stock for both rentals and ownership are extremely limited, and there are often extended periods of time where there is no housing stock available. Regional and rural towns have historically suffered from chronic population decline. However, with a $36 billion pipeline of infrastructure projects planned for the region, the opportunity to support population growth in regional communities have never been stronger. Without new housing stock available, the population will continue to decline as existing residents move away and new residents are deterred.

BURDEKIN LOCAL HOUSING ACTION PLAN

To address the challenges of the housing shortage in regional areas, the Burdekin Shire Council has recently developed and adopted the Burdekin Local Housing Action Plan (LHAP) with funding provided by the State Government through the Local Government Association of Queensland (LGAQ). Council engaged with key stakeholders to develop the LHAP which identified ways of addressing the housing needs of our community. It also enabled Council to identify opportunities and prioritise actions to respond to housing challenges in the Burdekin Shire. In our local housing action plan, Council identified several priorities aimed at addressing critical needs within our community’s housing sector. These include:

▶ Increasing housing stock – rental properties alone have reduced from approx 1,000 properties to 600 properties. This is due in part to landlords taking advantage of high

market sale prices as well as recent legislative changes that have shifted the balance in favour of tenants, offering greater protections and rights, while imposing stricter regulations on landlords within the housing market.

▶ Review of building requirements in flood areas – despite the Burdekin being predominantly mapped as flood-prone, most of the shire has never experienced floodwaters. This prompted a review of building requirements and a potential revision of zoning regulations to align with the actual historical patterns.

▶ Cost of construction in regional areas – like much of the nation, construction costs have escalated over the past decade. The cost of construction in regional areas reflects a unique range of factors, including distance from city centres, availability of skilled labour, transportation costs and planning requirements, all of which contribute to the overall viability and pricing of housing developments within our community.

HOUSING IN HINCHINBROOK

BACKGROUND

The Hinchinbrook region is facing a chronic shortage of new housing stock, which means the region is struggling to accommodate domestic migration to the region and appropriate housing to attract skilled workers and families, including seasonal workers in the cane industry. This issue has been exacerbated by the shortage of available residential land to enabling investment into new housing stock.

REASON FOR ISSUE

Currently council has no suitable land to develop as tenure of remaining town reserve is Unallocated State or Federal Land. Given the unallocated land status, barriers to the immediate development of town reserve include:

▶ Tenure conversion process to allow housing development to commence;

▶ Native Title must be addressed before tenure conversion, or any other dealings can be undertaken.

BENEFITS

▶ Housing to attract skilled workers for industry needs (including Queensland Health, Queensland Ambulance and private medical practitioners);

▶ Housing to attract more DIDO/FIFO workers to district to support projects such as, CopperString and Mount Fox Energy zone, due to Hinchinbrook lifestyle liveability factors.

▶ Enhanced liveability of region due to increased population and the attraction of additional supporting services.

WE ARE CALLING FOR

▶ Incentives to entice landholders to restore uninhabitable housing to current standards.

▶ Support the regional councils in delivering a pipeline of local infrastructure works (Hinchinbrook, Charters Towers and Burdekin) to flood free areas to facilitate private development through the Housing Australia Future Fund Facility.

HOUSING ON PALM ISLAND

BACKGROUND

As one of the most remote and vibrant Indigenous communities in North Queensland, Palm Island faces unique challenges, with housing standing as a critical priority. Inadequate housing availability and quality not only impact residents’ daily lives but also affect opportunities for employment, health, and education. Expanding housing on Palm Island addresses urgent overcrowding issues, improves living standards, and creates pathways for community-led economic development.

WE ARE CALLING FOR

▶ Investment from the National Indigenous Australians Agency into new housing developments on Palm Island.

▶ $13.6 million invested into critical water and sewer infrastructure upgrades required to support new housing developments on the Island.

3.0 Workforce Attraction & Liveability

Workforce attraction is crucial for Townsville North Queensland, as it drives economic growth and community vitality throughout the region. The North Queensland region is experiencing unprecedented levels of economic growth, and to ensure that the region remains on this upward trajectory, the attraction of both skilled and unskilled workers is vital. This chapter outlines the advocacy priorities that enhance the region through diverse job opportunities, liveability and cultural experiences. These projects are critical to ensure that North Queensland remains a desirable destination to live, work, visit and invest.

3.1 Townsville Waterfront Renewal

Creating the new face of Townsville and building regional Australia’s most liveable city

PRECINCT 2:

PRECINCT 1:

THE GLOBAL GREAT BARRIER REEF CENTRE OF EXCELLENCE

FULLY FUNDED BY THE FEDERAL GOVERNMENT

As Townsville stands on the cusp of significant population growth, the city will demand improvements in connectivity and liveability. The regions’ pipeline of committed and inprogress projects will create approximately 20,000 new jobs across the region over the next decade. An evolution in the city’s lifestyle, cultural and entertainment offering will be vital to attracting and retaining the talent needed to help the region meet its full potential.

NORTH AUSTRALIA ARTS AND ENTERTAINMENT

ARENA

SEEKING FUNDING FROM STATE & FEDERAL GOVERNMENT

The Townsville Waterfront Renewal will be developed across three precincts, ultimately creating a new lifestyle and cultural destination for the region. The project will create a world-class entertainment, marine science education, culture, and lifestyle precinct, helping to boost the city’s liveability and appeal for potential new residents and visitors ahead of the 2032 Olympic and Paralympic Games.

The project involves the creation of vibrant and distinctive precincts extending along the Ross Creek waterfront from the city heart through to the oceanfront. The redevelopment of these areas will be a catalyst to driving population growth, boosting the visitor economy, and increasing the region’s profile and appeal. Townsville Waterfront Renewal will help cement Townsville as regional Australia’s most liveable city. It will provide a catalytic change to Townsville’s lifestyle, investment and tourism- much like what the Strand continues to deliver.

PRECINCT 1:

THE GLOBAL GREAT BARRIER REEF

CENTRE OF EXCELLENCE

Australia’s $56 billion Great Barrier Reef deserves a gateway Aussies can boast about. A global showcase

PRECINCT 3:

REEF MARINE

TOURISM GATEWAY

SEEKING FUNDING COMMITMENT

for this natural wonder of the world. Queensland’s Reef will be on show to the world in 2032.

The Global Great Barrier Reef Centre of Excellence will celebrate and highlight Townsville’s position as the global headquarters of Marine Research, Education and Custodianship of the Reef. Precinct 1 will be a central showcase of the world’s largest coral reef ecosystem and includes:

5-STAR RATED WORLD CLASS GREAT BARRIER REEF AQUARIUM FEDERAL FUNDING COMMITTED

The Great Barrier Reef Aquarium (previously Reef HQ Aquarium) is the national education centre of the Great Barrier Reef and has been a cornerstone of the North Queensland community for more than three decades.

As a leading force in educating the global community about the conservation efforts of the Great Barrier Reef Marine Park Authority, the Aquarium has not only contributed to our local economy but has also instilled a profound sense of community and global pride.

Given Townsville’s status as the home of the Australian Institute of Marine Science, James Cook University and the Great Barrier Reef Marine Park Authority, it is essential to establish a world- class showcase that underscores Townsville’s position as the global epicenter of reef education and conservation.

WATERFRONT PEDESTRIAN BRIDGE

The Waterfront Pedestrian Bridge will connect Palmer Street and Flinders Street in Townsville. An all-accessible, safe and connected active transport network linking Townsville’s key tourism, hospitality and events precincts, activating and celebrating the Ross Creek Waterfront Priority Development Area.

PUBLIC INFRASTRUCTURE

Together as a partnership, Townsville City Council, the Great Barrier Reef Marine Park and the Port of Townsville have created a shared vision for the Townsville Waterfront’s reef education, research and tourism precinct. Utalising a place-based, peoplecentred approach to urban renewal, the partnership will deliver a truly integrated and activated Precinct that is an exemplar of city building entities working together towards common goals tailored to the local Townsville context. A funding application for Stage 1 of the public infrastructure works is currently pending to include all accessible waterfront promenade, a public plaza providing improved city connectivity and trunk and road infrastructure to help unlock significant private investments.

PRECINCT 2:

NORTH AUSTRALIA ARTS AND ENTERTAINMENT ARENA

Delivery of a modern, flexible, multi-purpose and high-tech entertainment facility has been a key commitment of the Townsville City Deal since inception and is a potential venue to contribute to the 2032 Brisbane Olympic and Paralympic Games. The Townsville Entertainment and Convention Centre (TECC), despite its historical significance and service to our community, is now at the end of its economic life. Maintaining this facility has become increasingly costly, and it is no longer deemed suitable for hosting national and international scale events. The TECC also currently serves as the home ground for the four-time National Champions of the Women’s National Basketball League (WNBL), the Townsville Fire. However, the venue’s significant constraints hinder its full potential and the broader aspirations of our city. Townsville needs the development of a new state-of-the-

art Sport and Entertainment facility that will usher in a new era of liveability for Townsville, attract world-class sports, concerts, cultural and business events, and be a catalyst for further city and regional investment.

The proximity to the Queensland Country Bank Stadium creates a prime entertainment precinct that will further elevate the city’s waterfront and liveability.

KEY FEATURES OF THE PROPOSED FACILITY

Capacity and Versatility: The new venue will offer up to 10,000 attendees for events. Additionally, it will provide versatile spaces for sporting events, cultural performances, business events, meetings, and breakout sessions.

Economic Impact: It is expected that this venue will have an estimated economic impact of $46 millIion annually. Further economic stimulus will be generated as a result of the construction. Increased tourism and event hosting will generate significant revenue for local businesses and the community at large.

Community and Cultural Benefits: Beyond economic gains, the facility will enrich the cultural fabric of Townsville. It will become a central hub for community activities, fostering local talent and providing residents with access to world-class entertainment and cultural experiences. Contribution to the 2032 Brisbane Olympic and Paralympic Games: The new precinct can serve as a training and competition venue, contributing to the success of the 2032 Games and showcasing Townsville on the global stage.

WE ARE CALLING FOR

▶ $360 million joint funding commitment from State and Federal Government for a world-class Arts and Entertainment Arena.

▶ $30M funding towards a pedestrian bridge connecting Flinders and Palmer Street (noting this was a condition of funding reallocation of Concert Hall)

▶ $50M Regional Precincts and Partnerships Program funding (application RPPP000D312) towards critical public infrastructure to support waterfront vision and unlock private investment opportunities

This is our once in a generation opportunity to change the face of North Queensland through worldclass education, arts, culture and entertainment facilities. The Waterfront Renewal will be a game-changer for our regions liveability, workforce attraction, tourism and economic prosperity.

3.2 Palm Island Tourism Masterplan

Palm Island is a tropical paradise, located in the middle of the Great Barrier Reef and is home to the largest remote Indigenous community in Australia. The Manbarra people and the indigenous Bwgcolman people, and their descendants were sent to the Palm Island missions from a number of communities across Queensland.

Palm Island is the largest discrete Indigenous community in Australia with approximately 4,000 people residing there. There is high mobility between Palm Island and the mainland, and the population can increase to over 5,000 people during festivals and events.

Palm Island Aboriginal Council has released a Palm Island Tourism Master Plan (PITMP) which identifies visitor trends and product opportunities available to Palm Island.

TOURISM SECTOR

Whilst Palm Island was a holiday resort in 1912, tourism has not been a significant industry in recent years. Visitors do travel to island, generally by ferry, but there have been limited experiences to attract them.

OPPORTUNITY OVERVIEW

Tourism is a key industry for Queensland, and Palm Island has the opportunity to participate in this to bring benefit and value to the community. $4.9M has been committed from the State Government towards Stage 1 of the Palm Island Tourism Masterplan, unlocking 5 iconic walking trails.

INDIGENOUS TOURISM

Aboriginal and Torres Strait Islander tourism is an iconic part of the Queensland tourism offering, and is essential to attracting new and returning visitors to Queensland. Visitors are seeking authentic cultural experiences, in 2019 approximately 1.35 million international visitors to Australia took part in an Indigenous experience on their holiday- a figure which has grown by 5% each year.

This presents a significant opportunity for the region to build products and experiences that are unique and world-class. These could include authentic cultural experiences, eco accommodation that is integrated into the natural and cultural settings, and facilities and experiences that enable visitors to immerse themselves in the region’s unique natural environments. Palm Island is unique, and its story is compelling. Creating experiences that engage visitors in understanding this, whilst enjoying the extraordinary land based and marine environment can offer a range of benefits for the community, and can be done in a way which does not negatively impact the community.

WE ARE CALLING FOR

▶ $2.2 million for the construction of 8 glamping sites on the Islands.

▶ $800,000 investment into enabling marine infrastructure on Palm, Havannah and Fantome Islands. The marine infrastructure will include small jetty’s on Havannah and Fantome, a floating finger wharf on Palm Island and new yacht moorings for each Island.

▶ $4 million for the development of a Splash-Park

3.3 Magnetic Island Koala Hospital

The Magnetic Island Koala Hospital is a not-forprofit registered charity. The Hospital has been operating since 2003 and was established for the rescue and rehabilitation of injured, sick, and orphaned koalas. The Bee Family have been operating the Koala Hospital as volunteers out of their private home, and over the years have supported more than 360 injured koalas.

The increased demand for wildlife care on Magnetic Island, particularly for injured and sick koalas, means the Magnetic Island Koala Hospital needs to look towards expansion. The Magnetic Island Koala Hospital has a vision to offer an immersive, educational, and inspiring experience for visitors and the community which supports the rescue, rehabilitation, veterinary care and subsequent release of injured, sick, and orphaned koalas and other wildlife.

BENEFITS

▶ An economic output of more than $13 million and employment for more than 20 people during construction and in the first 5 years of operation.

▶ Expediated response to wildlife care on Magnetic Island and improved services that reduce travel requirements for injured animals.

▶ Addressing the anticipated increased demand for wildlife care services on Magnetic Island due to the impacts of Climate Change.

▶ Educational opportunities for students, locals, and visitors.

▶ Opportunity for the local community to volunteer with a meaningful organisation and make a difference to the environment.

▶ Prime opportunity to positively profile Magnetic Island and the region nationally and globally through an immersive and regenerative tourism experience

▶ Opportunities to work with First Nations people to share their culture and demonstrate the connection between first nations people, koalas and other native wildlife.

WE ARE CALLING FOR

20+

PERMANENT EMPLOYEE’S $13M IN ECONOMIC OUTPUT

WILDLIFE CARE

$4.5 million to develop a visitor facing Magnetic Island Koala Hospital

3.4 Paluma to Wallaman Trail

The proposed Paluma to Wallaman Trail follows an ancient First Nations trading , language and a song lines. History is written in its awe-inspiring landscapes providing a flowing narrative for visitors to discover, to be challenged and to feel exhilarated.

Development of this new tourism infrastructure aligns to the demands of visitors and delivers authentic and immersive cultural experiences providing a unique opportunity for tourism growth. Eco-based adventure travel as well as cultural tourism have been identified as growth opportunities for the future visitor economy.

The Paluma to Wallaman Trail is a spiritual journey more than 60,000 years in the making and will provide a unique opportunity for the First Nations People to share the extraordinary stories of this country in a way that respects, retains and improves the values. The trail is proposed to be a mixed-use trail. Once completed, the trail would be 127km long (8 days/7 nights) and will link the Paluma Rainforest and Wallaman Falls – Australia’s largest sheer drop waterfall. The completed trail would require approximately 80km of new trails and eco-accommodation and camping at approximately 11-15 km apart.

BUSINESS CASE

The recently completed business case indicates that the ability to offer a series of shorter trails along with the full multi-day experience, as well as a range of accommodation options, will provide additional appeal to a broader market enhancing the Overall success of the trail. The trail covers three Local Government Areas of Townsville, Charters Towers and Hinchinbrook – and would provide activation and economic benefit into each.

The business case for the trail shows a Benefit Cost Ratio of 1.0 and estimates total users of the trail would increase from 9,000 in the first year rising to 25,883 by year 10.

STATUS:

▶ The business case for the Paluma to Wallaman Trail has been completed

▶ The State Government has committed $2 million to progress early works.

$81.5M

178 JOBS

16 JOBS

WE ARE CALLING FOR
▶ $46.9 million from State or Federal Government for project planning, management, and development to meet the staged business plan. This includes a Traditional Owner training and employment program.

3.5 Future Health Prosperity

GROWTH OPPORTUNITIES

Townsville Hospital and Health Service (HHS) operates 21 health facilities across the region, including primary care clinics, rural hospitals, aged care facilities, and Townsville University Hospital (TUH), which is the largest tertiary referral hospital in Northern Australia. In rural areas, which experience worse health outcomes than metropolitan Australia despite making a greater economic contribution, the Townsville HHS is commonly the only health service provider. While the significant breadth of specialty services at TUH, including fetal medicine, neonatal surgery, paediatric oncology, stroke interventions, neurosurgery, transplants, and intensive care, means every year thousands of patients receive lifesaving care without needing to travel away from home. More than providing the healthcare of today; the HHS is planning and innovating for the future.

An ambitious masterplan comprises several major expansions to ensure the continued health and prosperity of the region and solidify the position of Townsville as a centre of healthcare excellence. The delivery of health infrastructure will be a critical enabler of other industry priorities in the region.

WE ARE CALLING FOR

▶ Additional 80 Medical Placements in Townsville to ensure workforce security for critical sector.

▶ $300 million for Charters Towers Hospital to be made available from FY 24/25 subject to the completion of the business case. This will see a new hospital able to provide safer, higher-quality services to the local community. The preliminary business case will be completed 2024 following $2.5 million in funding support from the Queensland Government.

▶ $130 million for a Residential Aged Care Facility In Charters Towers to be made available from FY 24/25 to enable construction to coincide with the new hospital project. This will replace the existing facility which is significantly aged and prevents delivery of modern aged care services to local residents.

▶ $10 million for the development of an integrated health care facility on Palm Island which includes a new aged care facility and rehabilitation centre

4.0

Infrastructure

Common-user infrastructure, such as transport networks, utilities, and digital connectivity, is vital for the Townsville North Queensland economy. It provides essential services that support economic activities and improves the regions quality of life. Efficient transport links facilitate trade and mobility, while reliable utilities ensure that businesses and households function smoothly. Enhanced digital infrastructure fosters innovation and connectivity, bridging gaps in remote areas. Investing in such infrastructure helps attract investment, stimulate local economies, and create jobs. For Townsville and surrounding regions, robust common-user infrastructure is key to fostering growth, resilience, and a thriving, integrated community.

4.1 TropiQ- Townsville’s Tropical Intelligence and Health precinct

Growing Townsville’s Knowledge and Securing Continued Access to Critical Health and Education Services

BACKGROUND

TropiQ, Townsville’s Tropical Intelligence and Health Precinct, is driving a new knowledge economy for Townsville by accelerating the commercialisation and translation of innovations for industries in the tropical, health and Defence sectors. The TropiQ Precinct contributes $3.5 billion to the regional economy annually and collaborative masterplan processes have resulted in major infrastructure projects such as:

▶ $530 million Townsville University Hospital (TUH) expansion (due 2027).

▶ $300+ million private hospital development interest (site secured).

▶ $100 million James Cook University (JCU) Engineering and Innovation Place (delivered).

▶ $54 million JCU Student Accommodation (delivered).

▶ $32 million North Queensland Simulation Park, NQ SPARK (in progress).

The road networks within the TropiQ precinct are already operating at capacity during peak times. With projected population growth in Townsville and the surrounding region, combined with the expansion plans of TUH and JCU, unprecedented pressure will be placed on the trunk road networks in and around the TropiQ precinct. Of particular concern is access to TUH, the most significant piece of public health infrastructure in northern Australia and the tertiary referral and teaching hospital for North Queensland.

STATUS

Emergency vehicle access to Townsville University Hospital and all other forms of vehicle access to the TropiQ Precinct will be significantly impeded as soon as 2027.

Recently, TropiQ Precinct partners (TCC, JCU and Townsville Hospital and Health Service), in collaboration with DTMR commissioned AECOM to complete a traffic and transport modelling study for the precinct. The TropiQ Traffic Modelling Report identifies significant near-term network failures, due to increased demand on both internal and

surrounding feeder networks, as soon as 2027.

Beyond 2030, increasing traffic congestion will begin to gridlock internal and feeder networks, with trip times expected to increase fivefold by 2041. These delays will significantly impact patients, clinicians, and emergency services, ultimately compromising patient health outcomes.

Compounding this, is the urgent need to activate developable land on the JCU campus to enable crucial commercial and social infrastructure projects that are necessary to support the growth of TUH and JCU, and to secure economic and job creation opportunities associated with the expanding knowledge economy in the north.

Modelling analysis indicates priority interventions are critical at the western entry to the precinct, requiring investment into the following projects:

▶ $9 million for the upgrade of Joseph Banks Drive.

▶ $18.6 million for critical TropiQ Precinct road and enabling infrastructure to unlock vital development ready land to support precinct growth.

REGIONAL BENEFIT

Addressing these immediate challenges in the TropiQ precinct, will not only protect access to critical health and education services for North Queenslander’s now, but will also catalyse over $1 billion in social infrastructure projects. These include hotel accommodation, aged care and childcare facilities, residential housing for ~10,000 residents, and a diverse range of commercial and industry led opportunities.

The expected economic benefits of TropiQ’s development program include:

▶ 20,000 jobs by 2035 including 10,000+ jobs directly.

▶ $2.7 billion in GRP by 2035 including $1.2 billion directly.

▶ $1 billion p/a additional into the local economy.

▶ $11.3 billion output for local businesses by 2055.

WE ARE CALLING FOR

▶ $27.6m for critical TropiQ Precinct road and enabling infrastructure to improve access to critical services, and unlock vital developable land to support precinct growth.

4.2 NQ Defence Industry Park

Activating TropiQ’s Defence Industry Park

BACKGROUND

Townsville is one of Australia’s prime strategic Defence regions. It has significant Australian Defence Force representation, an extensive industry network, an established ready workforce, and a demonstrated capacity for growth and innovation.

Based on current regional capabilities and the increasing political strategic imperative to deliver “a secure nearer region, encompassing maritime SE Asia and the South Pacific” the opportunity for Townsville and the near region to support the national Defence mission is undeniable.

The NQ Defence Industry Park is a strategically located zone that brings together and leverages the combined expertise of health, education, research and Defence to deliver:

▶ Defence industry innovation.

▶ Integrated soldier systems.

▶ Clinical simulation and training.

▶ Advanced environmental simulation.

▶ Marine research, simulation, and autonomous systems.

▶ Research testing and translation to market.

▶ Emergency and disaster management simulation and training.

▶ Testing and deployment of new systems and technologies for the tropics, in the tropics.

Underpinning this strategic initiative is the $32m NQ SPARK project. NQ SPARK will deliver an Advanced Environmental Simulation Facility (AESF) as the foundation infrastructure for a technology-oriented collaborative precinct, on a common boundary between Lavarack Barracks, James Cook University and Townsville University Hospital. This development will co-locate anchor tenant Cubic Defence, as well as provide additional commercial space for industry collaboration.

STATUS

NQ SPARK has successfully secured federal funding for construction; however, works cannot reasonably commence until funding is confirmed and guaranteed for the connecting infrastructure, which connects NQ SPARK to services, utilities, and customers.

Activating this project will require Government investment to deliver an access road and services corridor into NQ SPARK via Discovery Drive.

Furthermore, this investment will unlock developable sites across a strategically designated 10 hectare site, located on JCU land, at the nexus of the University, Lavarack Barracks and Townsville University Hospital. This development will enable the co-location of Defence industry in close proximity to Defence capabilities, expertise in tropical intelligence and health, and world class research facilities.

REGIONAL BENEFIT

The NQ Defence Industry Park is expected to deliver considerable economic benefits to the Townsville, Queensland and Australian economy.

Construction over the life of the project is expected to generate $121.37 million in Gross Domestic Product and 834 FTE jobs, including 262 directly (Townsville is expected to receive a $77.9 million GRP benefit and support 555 FTE jobs, including 193 directly).

Once operational, NQ SPARK will generate economic and employment activity directly through the AESF and co-located tenancies, contributing $109 million in economic output, $57.8 million GDP, and 379 FTE jobs by 2029/30 (Townsville is expected to receive a $49.1 million GRP benefit and support 330 FTE jobs, including 127 directly).

As the 10 hectare site welcomes new Defence industry tenants, subsequent benefits include increased economic output, job creation in high value sectors, industry partnerships, research and commercialisation opportunities, and ultimately, the required Defence industry presence in Townsville to support the national Defence mission.

WE ARE CALLING FOR

▶ $16.5 million investment to secure this project by delivering the enabling access road and services corridor into NQ SPARK and unlocking a 10-hectare Defence Industry Precinct.

4.3 Ayr Industrial Estate Second Access

Burdekin Shire Council is expanding the Ayr Industrial Estate through the creation and staged development of new industrial allotments in a fully serviced precinct adjoining the existing Ayr Industrial Estate.

The Ayr Industrial Estate expansion is the next stage of Council’s master-planned industrial estate located in Ayr, providing over 14 hectares of fully serviced, affordably priced, freehold industrial lots for development. The first stage, involving the creation of up to 25 new lots, has the potential to create 225 new jobs when fully developed. Burdekin Shire Council is proposing the construction of a new intersection and road access into the Expansion Area of the Ayr Industrial Estate to cater for longer sized trucks

ARE CALLING FOR

eg B-doubles, A-doubles. This project will provide a second access road to the Ayr Industrial Estate from the Bruce Highway. The Council has invested over $10 million of its own funds to date to develop the Ayr Industrial Estate expansion and has not received any grant support for the project.

BENEFITS

Provide alternative road access to the Expansion Area of the Ayr Industrial Estate from the Bruce Highway.

STATUS

The Ayr Industrial Estate expansion is identified as essential economic infrastructure in the adopted Outlook 2025: Burdekin Economic Development Strategy 2020-25. The proposed second access is currently under investigation.

▶ The estimated cost of this project is $4.475 million with Burdekin Shire Council funding all other development costs for the project to date.

4.4 RegenAqua Hinchinbrook

Water treatment project

The RegenAqua projects meets the objectives of the Reef 2050 Plan. It is a transformational technology that will drive sustainable growth of agriculture and aquaculture industries plus municipal infrastructure in North Queensland, while reducing existing levels of nitrogen and phosphorous being discharged into rivers and Great Barrier Reef waters from aquaculture and municipal wastewater treatment facilities.

RegenAqua is a homegrown, world-leading technology pioneered by James Cook University (JCU) in partnership with Pacific Biotechnologies Pty Limited (PacBio), an innovative 100% Australian-owned company.

RegenAqua uses sunlight to convert these nutrients into macroalgae (seaweed), which is then processed into a biostimulant to accompany conventional fertilisers. The benefits are cleaner water, further aquaculture expansion and growth in sustainable agriculture.

The system was developed as a solution to reduce nutrient discharge on PacBio’s aquaculture assets, however, highly successful trials at Cleveland Bay and more recently at the Burdekin Wastewater Treatment Plants (WWTP) have proven the technology as an effective, low cost, scalable solution for Councils.

BACKGROUND

The basic principle of RegenAqua is that native green algae use sunlight to grow and absorb phosphorus and nitrogen (nutrient pollutants) from the waste water stream prior to discharge into the environment. Green algae is then harvested and converted into a biostimulant (PlantJuice) that enables the return of these elements back into the agricultural biosphere in a safe, low energy and value-adding form (like auxins, gibberellins etc.) rather than as damaging dissolved inorganic nitrogen (DIN). These natural hormones enable plant growth and enrich soils reducing the dependency on traditional nitrogen, phosphorus, and potassium (NPK) fertiliser systems, widely considered a source of DIN and pollution across the Great Barrier Reef catchment areas.

STATUS

The Burdekin Shire has been working with Pacific Bio for some time and is leading the way with a shovel ready project designed to protect its community, enable local industry growth, and reduce its impact on the Great Barrier Reef.

▶ With a RegenAqua pre-facility in operation since March 2021, the facility is consistently delivering exceptional results with nutrient pollutant reductions to below global best practice of 5mg/L Nitrogen and 1mg/L Phosphorus.

▶ Construction has commenced on the commercial facility in the Burdekin Shire.

▶ The Hinchinbrook RegenAqua Facility is currently sized at six hectares.

BENEFITS

This project supports jobs and economic development in North Queensland and demonstrates a practical solution to protecting one of the world’s greatest natural assets – the Great Barrier Reef. This Australian technology can not only help to protect our Great Barrier Reef but could be exported to other nations in need of support of their ecosystems and reefs.

FUTURE SITES

Townsville City Council has expressed interest in implementing RegenAqua technology at the facility in Condon. The completion of these sites will provide a foundation that will enable RegenAqua macroalgal wastewater treatment to be adopted by other councils across North Queensland east coast.

The Burdekin, Hinchinbrook and Townsville projects combined will remove nutrients currently discharged into the Great Barrier Reef catchment

WE

ARE CALLING FOR

Shire.

4.5 Big Rocks Weir

Supporting Critical Water Infrastructure in the North

BACKGROUND

Big Rocks Weir is located 26km north-west of Charters Towers and upon completion would be capable of storing at least 10,000 ML of water - double that of Charters Towers’ existing water infrastructure. Big Rocks Weir will open up at least 3,000 ha of new irrigated agriculture for the region by providing a guaranteed water supply. Importantly, the Weir will also provide water for new manufacturing and industrial development that will help to meet future urban water demands for the people of Charters Towers and surrounding regions.

PROJECT STATUS

In 2024, the Charters Towers Regional Council made the decision to transfer ownership of the project to the State Government. The project remains jointly funded with commitments by the Queensland Government ($30M) and the Australian Government ($38M) through the National Water Grid Fund. Following this decision, the Queensland Government has affirmed its commitment to advancing the project. However, Townsville Enterprise has continued to advocate for this critical project, ensuring that construction begins at the earliest feasible date to maximise economic benefits for the region.

REGIONAL BENEFITS

The Big Rocks Weir is a vital project that will create more than 170 new jobs and an additional $35 million in agricultural product annually. The benefits also include increased water security for the Charters Towers community as well more on-farm employment, food processing and handling services to supply domestic and export markets.

WE ARE CALLING FOR

The Federal Government to deliver the Big Rocks Weir Project jointly with the Queensland Government over the next three years.

4.5 Enhancing the Burdekin River System

The Burdekin River is one of the largest river systems in Australia with the Upper Burdekin catchment located in the wet tropics. However, the region’s population has more than doubled since the Burdekin Dam was built in 1987.

The abundance of water in the Burdekin catchment and its potential to support our economic future is a competitive advantage for our region.

Significant investment has been undertaken into developing new water infrastructure storage proposals in this catchment. Townsville Enterprise has driven the business case development of the Hells Gates Dam and the Big Rocks Weir, in addition to Sunwater’s development of the proposed 2 metre raise to the Burdekin Falls Dam.

Townsville Enterprise acknowledges the decision of the Albanese Government to withdraw the $5.4 billion funding commitment to develop Hells Gates by the Morrison Government in 2022. TEL has sought at all times to act in the best interests of the economic future of our region and continues to do so.

TEL welcomes the decision of both Federal and State Government’s to take a holistic review of the entire Burdekin catchment to assess the most appropriate development of infrastructure to support our economic future. It is incumbent on both governments to ensure the previous monies committed is reserved for future investment in the projects identified in the further regional water assessment and review of the Burdekin Water Plan.

TEL remains firmly of the view that the development of water storage and distribution infrastructure is required in the upper Burdekin Catchment as part of a holistic infrastructure development program being considered.

TEL welcomes the decision to review the Burdekin Water Plan and undertake a Water Infastructure Assessment.TEL notes that:

▶ 73% of the rainfall occurs during the fourmonth wet season (December to March)

▶ 7.8 million megalitres per year flows from the mouth of the Burdekin River

▶ Water losses and unallocated water reserves exist in lower Burdekin that could be captured and re-allocated

▶ Climate change is expected to see a shorter but more intense rainfall periods resulting in the same volume of rain which means additional capture

and storage infrastructure will be required

▶ North Queensland’s water security is critical because droughts can last 8-10 years.

The Upper and Lower Burdekin catchments must work as a combined system to maximise the use of available water within the catchment.

A holistic review of the whole system will ensure optimal use of the current unused water allocations and maximise the capture and distribution of water where it will have the best economic use. Currently, the bulk of the water available sits in the Lower Burdekin, limiting future development in the Upper Burdekin.

BURDEKIN RIVER IRRIGATION AREA

CHANNEL ENHANCEMENT AND MODERNISATION PROJECT

An immediate priority for infrastructure investment is required to upgrade the open earth water distribution channels that exist in the Burdekin River Irrigation Area (BRIA).

Extensive work was undertaken by the Queensland Government in 2017 that identified a risk to the future of agricultural development in the lower Burdekin arising from salinity impacts caused by rising groundwater tables.

BENEFITS

Studies undertaken by the Queensland Competition Authority found that over 50,000 megalitres of water is lost in the BRIA Channel system each year through channel seepage, contributing rising ground water issues.

Recent discussion papers previously released by the Queensland Government identified options to reduce channel seepage by improving the open earth irrigation channels and upgrading the distribution infrastructure to prevent these losses.

The Government has committed approximately $25 million to support works that will help recover these losses. However, futher funding is required to carry out ongoing channel improvements and upgrades to recover this water, return it for allocation to alternative economic uses and address the rising groundwater threat in the Lower Burdekin.

Approxiamately 200,000ML is nominally allocated in the Burdekin Water Plan to account for water losses in the system. The ability to recover the actual losses

and return at least part of the nominal allocation for use in other parts of the basin will contribute significantly to the development of other storage and distribution projects.

HELLS GATES DAM

Hells Gates Dam will support population growth, provide the water the region needs for green hydrogen production and unlock prime agricultural land to solve the global food crisis.

The proposed Hells Gates Dam is located approximately 120km north west of Charters Towers and 160km north west of Townsville. It is capable of storing 2,100gl of water to irrigate 60,000 hectares of prime agricultural land.

WHY HELLS GATES DAM?

Hells Gates Dam and irrigation scheme presents a transformational economic development opportunity for Northern Australia, comprising of a unique agricultural project, that will double the value of regional crop production utilising world-leading land management and high-tech agriculture practice. Hells Gates Dam will be a key enabler for the region’s population growth and will support new industries such as hydrogen.

Hells Gates Dam presents a unique opportunity for the optimal use of currently unused water allocations within the vast Burdekin catchment if both dams (including the new Big Rocks Weir) are operated as a combined system.

A secure water system is vital to support the agriculture industry in providing the food for the future and enhancing the region’s resilience to global food shortages. Water infrastructure is also imperative for emerging industries including mining and refining of critical minerals and renewable hydrogen production

IMPACT ON THE GREAT BARRIER REEF

The business case shows Hells Gates Dam will have positive outcomes for the Great Barrier Reef. It will reduce sediment and nutrient loads to the Burdekin Dam, supported by worldleading land management and agricultural practices.

Expanding irrigated agriculture in the upper rather than the lower Burdekin Basin will provide additional buffering against pollutants that affect the Great Barrier Reef.

HYDROGEN PRODUCTION

Hells Gates Dam will support the emerging hydrogen industry. Green hydrogen is produced by taking renewable power, high-purity water and converting to hydrogen and oxygen gas via electrolysis. The water requirement for green hydrogen is 9 litres of water per 1kg of hydrogen produced.

In December 2022, Townsville Enterprise commissioned a

Hydrogen Opportunities Report from GHD to investigate the hydrogen potential for Hells Gates Dam. The report concluded that Hells Gates Dam would enhance the opportunity for large scale hydrogen production in Townsville.

Hells Gates Dam would also provide the opportunity to accelerate the development of hydrogen export facilities in the region. In addition, given the large area of surrounding land at Hells Gates Dam, there could be an opportunity for a large-scale renewable energy development (e.g. solar) to support green hydrogen production.

BENEFITS

The Hells Gates Dam Detailed Business Case confirmed the project will deliver:

▶ A Benefit Cost Ratio of 1.05 for the full scheme

▶ Generate $6 billion increase in GRP from agricultural projects, positively impacting the entire supply chain from the farm to the export terminals

▶ Long-term water security and reliability for Townsville, Charters Towers and the surrounding regions

▶ Positive outcomes for the Great Barrier Reef

▶ Indigenous jobs and new business opportunities

▶ More than 10,000 jobs during construction and more than 3,000 ongoing jobs. These jobs will be highlyskilled and high-paid roles for generations to come

▶ One of Queensland’s largest irrigation schemes

▶ The opening of 60,000 hectares of prime agricultural land

▶ Double the value of crop production regionally

▶ Interconnectedness with other projects including the Australian Singapore Military Training Centre, Port of Townsville and Townsville Airport upgrades to cater for agricultural exports and freight, and major transport initiatives

▶ Major infrastructure will be developed for the scheme, including enhanced and improved access to roads and energy

▶ Harnessing highest flow of Australian river resources to build long-term prosperity

WHAT WE NEED

▶ Comprehensive water monitoring infrastructure to be established in the upper Burdekin to accurately measure water available for storage and economic use at the Hells Gates Dam Site.

▶ $50 million from the State or Federal Government to complete the Environmental Impact Assessment.

5.0 Immigration

It is expected that 17,000 jobs wills be required to deliver the construction phase and a further 5,000 workers to deliver the ongoing jobs of Townsville North Queensland’s $30+ billion project pipeline. An inherent challenge in delivering this pipeline includes the skilling up of the existing workforce to support the new jobs in new and emerging sectors such as renewables, hydrogen, alternative fuels and battery manufacturing. Even with the natural net increase in population and accounting for both intrastate and interstate migration, it is extremely unlikely that the entire scope of this pipeline can be delivered without international migration. This will pose a serious threat to the economic growth of the region and threaten billions of dollars of investment from the private sector. The reputational damage this would have on our region, and our ability to attract future investment into the regions would be deeply impacted.

5.1 Designation Area Migration Agreement (DAMA)

BACKGROUND

In 2021, Townsville Enterprise was announced as the Designated Area Representative (DAR) for the Townsville North Queensland Designated Area Migration Agreement (TNQ DAMA). This was in response to the extreme labour shortages experienced by the region post-Covid.

UPDATE

Since then, Townsville Enterprise has endorsed over 70 applications for 253 positions and has just over 14 applications currently under consideration. The DAMA has been able to provide a bespoke labour solution, particularly for the regional community on the corridor from Townsville to Mount Isa.

CHALLENGES

The effectiveness of the DAMA has been significantly challenged by the introduction of the Temporary Skilled Migration Income Threshold (TSMIT) which was introduced in 1 July 2023. Since the establishment of the TSMIT and the new $70,000 income threshold, Townsville Enterprise has strongly advocated for the 10-20% discount for specified positions based on the current industry award rate. The TSMIT increase severely impacted the most in need businesses in our region such as childcare, hospitality and tourism as the current industry awards are far below the TSMIT level and therefore, to employ through DAMA would mean that migrant workers would be paid, in some circumstances, 20% more than their current staff. Not only would this create an equity issue, but it also means that DAMA wages are out of the realm of financial viability for the businesses.

To assist those business, TNQ DAMA submitted a variation to the TSMIT for certain occupations in September 2023. To date we still have not received any approval or decline from the Minister to this variation. This has left many companies in the region without staff and has led to some businesses reducing opening hours or services.

▶ Expanding the list of occupations currently registered under the DAMA.

▶ TSMIT discounts for specified positions- between 10-29% discount depending on occupation and the rate of the award.

▶ English language concessions not currently listed for certain occupations.

▶ Skill level concessions not currently listed for certain occupations.

▶ Streamlined processing by the Department.

WE ARE CALLING FOR

5.2 Regional Migration Incentives

To ensure that our region is equipped to handle the influx of developments expected from the pipeline of projects in the region. These upcoming projects include nationally significant renewable energy, advanced manufacturing and alternative fuel production facilities that are integral to both the economic development of the region and the decarbonisation of hard-to-abate industry sectors.

The North Queensland Project Pipeline consists of 63 projects worth an estimated $37B, 17,000 construction jobs are expected to be created to deliver this pipeline and a further 5,000 ongoing jobs.

The projects included in this pipeline will also be competing with the significant force posture changes occurring as a result of the Defence Strategic Review. With an additional 500 defence personnel expected to relocate to Townsville over the next year, and new investment being made into defence industry to support this transition, there remains concerns that the regional population will be unable to accommodate this growth.

Townsville Enterprise strongly recommends the Federal Government to consider implement an incentive scheme that attracts the critical workers to live and work in the region, ensuring the deliver of the major upcoming projects in the pipelines. economy, promote the regions liveability and support the State’s ambitions towards the 2032 Olympics and Paralympic games.

WE ARE CALLING FOR

▶ Regional migration visa’s fast-tracked over capital cities for critical workers

▶ Provide better access to permanent visa pathways for international students seeking to work in regional Australia post completion of their university studies.

▶ Increase the zonal tax allowance benefit for regional and rural communities and index future increases to CPI.

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