Industry Disappointed at Lack of Disaster Resilience Measures in the Budget

Industry bodies and experts have expressed disappointment in the Federal Budget for its lack of long-term measures to improve disaster resilience as climate change impacts the frequency and severity of extreme weather events across Australia. 

One of the few surprises in this year's Federal Budget was an unexpected tax cut that has now passed the Senate. This new round of tax cuts gives average earners up to $268 in their pocket from the middle of 2026 and up to $536 from 2027, as a way to provide some form of cost-of-living relief. 

Energy bill rebates of $75 per quarter will continue to be provided for eligible Australian households and small businesses until 31 December 2025 to help put downward pressure on inflation and energy prices.

The government also announced productivity reforms, with an intention to ban non-compete clauses for workers earning less than the high-income threshold, currently $175,000. This is set to impact almost 3 million workers, or 1 in 5 working Australians. 

However, there was little in this Budget or the Opposition's Budget Reply to suggest that long-term disaster resilience was a key issue being focused on ahead of the federal election.

In its pre-budget submission, NIBA had urged the government to expand the Disaster Ready Fund (DRF) beyond its current timeframe, introduce a national co-funded household mitigation scheme, and establish an advisory committee to tackle emerging risks. 

NIBA’s submission also emphasised the importance of household-level mitigation, particularly in high-risk areas vulnerable to cyclones and bushfires. NIBA proposed a co-funded scheme that would help homeowners retrofit properties to better withstand extreme weather, similar to successful programs implemented in the United States. 

With insurance premiums rising and the increasing likelihood that one in 25 homes will become effectively uninsurable within five years, the industry’s calls for stronger disaster preparedness are growing louder.  

As climate change continues to pose significant risks to Australian communities, industry leaders are urging the government to prioritise long-term resilience measures. With the Disaster Ready Fund set to conclude in 2028, a long-term, sustainable approach to resilience funding is essential to reducing the economic and social impact of natural disasters and addressing affordability concerns.

While there have been no significant policy announcements around disaster resilience and preparedness so far, that might change swiftly as the nation gets ready for an election to be held on 3rd May. NIBA remains committed to advocating for meaningful reforms that ensure insurance remains affordable and accessible for all Australians and looks forward to further policy announcements in the lead-up to the Federal Election.

You can view the full Budget papers at the Australian Federal Budget website.