Government introduces $200 million disaster fund bill

The government has said, that if matched by state, territory or local governments, the fund, would ultimately provide up to $400 million annually. Insurers and other industry stakeholders have long called for a government investment of this kind.

“We are going to help our industries make that big switch to renewables but we also need to manage the brutal reality that our beautiful country is going to be subjected to more natural disasters,” said O’Neil.

The Insurance Council of Australia (ICA) has welcomed the proposal.

“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,” said ICA CEO Andrew Hall.

The $200 million a year disaster fund initiative is in line with the ICA’s report Building a More Resilient Australia, which called for measures to better protect households and communities from both the impacts of extreme weather and to put downward pressure on premiums.

“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,” said Hall.

Tomorrow, the ICA will release new research on the cost of extreme weather in its second Insurance Catastrophe Resilience Report.