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Council maintains commitment to aerodrome project despite budget blowout

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A major aerodrome expansion project is facing higher construction costs, prompting a review of how the next stage will be delivered.

The update was contained in Sunshine Coast Council’s chief executive officer’s Quarterly Progress Report for 2025-26, which was presented to council at its ordinary meeting on Thursday.

The report puts Stage 1 of the Caloundra Aerodrome Master Plan 2042 at 50 per cent progress, with updated costings about 62 per cent higher than the initial estimate made in 2021.

A Sunshine Coast Council representative said council remained committed to the long-term development of Caloundra Aerodrome and the economic opportunities it presented for the region.

“Our focus is now directed towards identifying the most effective and responsible way to deliver Stage 1 of the Master Plan and we are currently reviewing a range of potential delivery options for the project,” the representative said.

The Caloundra Aerospace Park is highlighted in this aerial view. Photo: Sunshine Coast Council.

The master plan is intended to transform Caloundra Aerodrome into a modern aerospace and innovation hub through significant infrastructure investment and strategic land development.

The project was previously promoted as the next step in expanding aviation-related activity at the aerodrome, including through the Caloundra Aerospace Park.

In 2024, council sought tenants for the first stage of the park, offering long-term ground leases for aviation-related businesses. The opportunity was aimed at businesses in areas including aviation maintenance and repair, advanced manufacturing and emerging technologies.

At the time, council forecast the development could create hundreds of jobs and contribute more than $75 million a year to the local economy once Stage 1 was tenanted and operating.

The latest report does not disclose a revised completion date for the master plan.

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Council also said it was not currently in a position to disclose estimated project costs or detailed financial information.

“Releasing this information prior to any future procurement activities could compromise Council’s ability to maintain a fair and competitive process and achieve best value for our community,” the spokesperson said.

The master plan was among 18 operational activities identified by council as facing challenges with their planned timeframe and/or budget by June 30, with rising construction costs, supply issues and prolonged wet weather among the broader pressures affecting infrastructure projects.

The wider report found 59 of council’s 77 operational plan activities had progressed as planned.

Council has said any decisions about the project’s scope, timing or delivery approach would be considered and communicated once they had been finalised.

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