Queensland is creating a new position of chief midwife and has promised to expand maternity services following demands for action over staffing shortages.
Health Minister Shannon Fentiman announced the $16 million plan over four years after meeting union representatives this week.
The meeting came after regional midwives marched on state parliament on Monday frustrated with the Palaszczuk government's funding in the June budget.
The government provided $42 million in maternity funding in the budget but made no allocation for midwives and midwife-led models of care, the Queensland Nurses and Midwives Union said.
Midwives warned that staff were severely overloaded, resulting in unsafe conditions for both mothers and babies.
Ms Fentiman said Wednesday's announcement was about continuity of care and providing a head adviser for maternity workers across the state.
"I sat down with women who told me they want a choice, they want continuity of care, and they want it close to home," she told reporters on Wednesday.
"That's what today's announcement is all about."
The minister acknowledged constructive conversations at the maternity roundtable, with the union's secretary Kate Veach satisfied with what has been proposed.
"These are significant impacts for mothers, babies and women today," Ms Fentiman said.
"They will have a significant, good and positive impact on the services that they're providing and services that they're receiving."
The government is also creating the role of chief midwife officer to lead the 3000-strong workforce and help improve maternity services across the state.
There was already a chief nursing and midwifery officer so it made "complete sense" to have a dedicated role for midwifery, Ms Fentiman said.
Recruitment for a chief midwife would begin immediately, with an appointment due in the coming months, she said.
