Australia retains federal disaster recovery funding share of up to 75%

Anthony Albanese's government has dropped a proposed equal split of disaster recovery costs between the Commonwealth and states. Treasurer Jim Chalmers announced the change on October 9.

The proposed 50-50 model will give way to existing arrangements under which the Commonwealth can cover up to 75% of eligible recovery costs. That share applies when specified criteria are met, rather than automatically covering every expense after every disaster.

The reversal followed criticism from state governments and councils. Queensland Premier David Crisafulli warned that a heavier burden on local authorities could force residents' rates higher. After the announcement, he thanked Albanese for listening to the objections.

Crisafulli said Queensland would await implementation details and seek to ensure the arrangements were maintained in full. Funding is particularly significant for a state regularly exposed to floods and cyclones as disaster season approaches.

Logan Mayor Jon Raven said the Local Government Association of Queensland had pressed Chalmers and Emergency Management Minister Kristy McBain to reconsider. He welcomed the federal government's willingness to respond to feedback.

The government's official announcement also retained councils' ability to claim Counter Disaster Operations costs and promised revised funding activation thresholds. New South Wales welcomed the preservation of the existing system's core arrangements.