Disaster resilience funding bill enters Parliament
The Federal Government has introduced a bill into Parliament to provide up to $200 million a year for disaster resilience, after committing before the election to a spending boost long sought by insurers.
Home Affairs Minister Clare O’Neil says Australia is facing longer and more intense natural disaster seasons due to climate change effects, and the Black Summer bushfires and severe flooding this year show the consequences of not being prepared when unprecedented catastrophes hit.
“This bill makes amendments to ensure that Australia is appropriately funded for natural disaster resilience and risk reduction initiatives,” Ms O’Neil told the House of Representatives today.
“Dedicating the Disaster Ready Fund to natural disaster resilience and risk reduction will provide a clearer distinction between the different funding sources for recovery and resilience and enhance the focus on building resilience for future natural disasters.”
Ms O’Neil says the funding reflects a Productivity Commission report message and is supported by insurers, local government and disaster relief bodies.
The limit will be reviewed at least every five years, with flexibility provided to the responsible ministers to make changes while also ensuring long-term sustainability, she said.
The Insurance Council of Australia (ICA) Building a More Resilient Australia report released this year reiterated its call for Federal spending of $200 million a year, matched by all states and territories.
“We congratulate the Albanese Government on its commitment to invest in improving the resilience of home and communities at risk of impacts from floods, cyclones and bushfires,” ICA CEO Andrew Hall said today.
“Resilience and mitigation funding is an investment into future protection, and so it is the responsibility of all levels of government to do more to improve community resilience.”
ICA is also calling for a review of land use planning arrangements to ensure no more homes are built in areas with a high risk of extreme weather impacts, and for national building codes to be strengthened.
Additionally, states and territories must abolish duties, levies and taxes on insurance products, which increases the cost of premiums and discourages adequate levels of cover, it says.
The ICA will tomorrow release research on the cost of extreme weather in its second Insurance Catastrophe Resilience Report, which uses insurer data and insights to review the last 12 months of extreme weather events and advocate for changes to reduce future impacts.
