Changes to disaster recovery funding arrangement reforms to support Australian communities

Australian Treasury

The Albanese Government will change the proposed new Disaster Recovery Funding Framework to deliver more funding for communities after disasters, following extensive consultation.

This means more certain funding for communities across the country when they need it most.

The Commonwealth will retain the current cost‑sharing arrangements, providing up to 75 per cent of disaster recovery funding when certain criteria are met, because we know communities need certainty when disasters hit.

Further changes include retaining the ability for councils to claim costs under Counter Disaster Operations and revising funding activation thresholds to ensure all communities get the support they need when they need it.

The funding arrangements we announced in June have always been about getting more support, more quickly to communities that need it.

The changes we’ve announced today, following extensive consultation with locals in disaster‑affected communities will mean that our policy works even more effectively, with more funding, easier access to funding in a more timely fashion.

The new framework responds to recommendations from the Independent Review of Commonwealth Disaster Funding, led by Mr Andrew Colvin AO APM.

The new framework builds on the significant improvements the Albanese Government has made in emergency management, including:

  • The establishment of the National Emergency Management Agency (NEMA) to create a single, nationally coordinated, end‑to‑end Commonwealth agency to better prepare for, respond to and recover from increasingly frequent and severe disasters.
  • The $1 billion Disaster Ready Fund (DRF) delivering disaster resilience and risk reduction across Australia.
  • More than $100 million investment in the national aerial firefighting capability to support states and territories to respond to crises.
  • The continued investment in the National Emergency Management Stockpile to support the roll‑out of critical goods and services to communities quickly.
  • Delivering AusAlert, the new national emergency warning system that sends near instant emergency alerts to mobile devices – a more efficient, faster and secure system.

Quotes attributable to Treasurer Jim Chalmers

“We’re delivering more certain funding for communities across the country when they need it most.

“We said we would consult widely and genuinely and we have. Today’s announcement is the direct result of strong advocacy from councils and Queensland federal Labor colleagues.

“When disaster strikes, we will be there with the funding to help people get back on their feet, and that’s what these changes are all about.”

Quotes attributable to Minister for Emergency Management, Kristy McBain

“I’ve been engaging with councils across the country about these reforms and thank them for their engagement.

“I want to ensure our reforms reflect the varying experiences of communities across Australia, and these changes to the reforms will ensure no community is left behind.

“The reforms will also help ensure the system is fairer, and it’s easier for councils to access funding when they need it.”

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