NIBA’s Pre-Budget Submission Calls for Long-Term Disaster Mitigation and Risk Management

NIBA has submitted its recommendations for the 2025-26 Federal Budget, urging the Australian Government to take further action to address disaster mitigation, insurance affordability, and emerging risks. 

NIBA’s submission emphasises that while insurance provides a vital safety net for Australian communities, “it is only one part of the solution.” The association argues that a proactive approach to disaster mitigation, with sustained investment at both the community and household levels, is essential to reducing the financial pressures that contribute to rising insurance premiums. 

To address these issues, NIBA has made three key recommendations: 

• Expanding the Disaster Ready Fund into a long-term program 
• Establishing a co-funded national household mitigation scheme 
• Creating an advisory committee to address emerging risks 

Expanding the Disaster Ready Fund 

NIBA has acknowledged the government’s efforts in establishing the Disaster Ready Fund (DRF) but stresses that disaster resilience funding must extend beyond its current 2028–29 end date. The submission states: 

“NIBA strongly supports transitioning to a rolling ten-year disaster mitigation funding program. This approach mirrors existing long-term funding mechanisms and aligns with the Government’s stated objective for the DRF to serve as an enduring fund.” 

Additionally, NIBA has recommended indexing the DRF to inflation, warning that “under current arrangements, the $200 million/year figure would be reduced to $171 million in real terms by the end of the current funding commitment.” 

National Household Mitigation Scheme 

While community-wide disaster resilience projects are essential, NIBA highlights that in some high-risk areas, such as those prone to tropical cyclones, community level mitigation efforts may not be enough. The submission states: 

“For many communities, such projects will have limited effectiveness in enhancing resilience to natural disasters, particularly in areas frequently impacted by tropical cyclones. In such cases, household-level mitigation efforts provide a practical and impactful alternative.” 

NIBA argues that a national household mitigation scheme, co-funded by federal and state governments, would help homeowners take proactive steps to protect their properties. The submission points to the ‘My Safe Florida Home’ program as an example of a successful initiative that provided free property assessments and grants for retrofitting homes to improve resilience. 

“Without support, this gap in preparedness will exacerbate losses, strain government recovery efforts, and drive-up insurance premiums in high-risk areas.” 

Addressing Emerging Risks 

NIBA’s submission also highlights the increasing threats posed by cyber risks, artificial intelligence, and geopolitical instability. The association calls for the government to establish an advisory committee to provide expert guidance on these emerging risks and ensure a coordinated approach to mitigation. 

“Australians are largely unprepared for these events despite recognising the significant risks they pose due to the rapid evolution of such risks and the lack of tools and expertise to effectively mitigate them.” 

The submission suggests that insights from this advisory committee should be shared with state and local governments to improve preparedness across all levels of government. 

A Call for Action 

NIBA’s submission underscores the need for long-term investment in disaster resilience and risk management. The association has reaffirmed its commitment to working with the government to implement these reforms, stating that the proposed measures would “help to strengthen household and community resilience, improve insurance affordability, and ensure communities and businesses can thrive in the face of growing challenges.”