Queensland faces fierce opposition to disaster recovery funding changes
A federal proposal to shift more of Australia's disaster recovery funding burden onto state governments is meeting strong opposition in Queensland. ABC reports that local councils in the state most exposed to cyclones and floods warn that the changes could destabilise their budgets.
According to ABC News Australia, a federal proposal to revise the country's Disaster Recovery Funding Arrangements by lifting the state-government share from 25% to 50% has triggered strong opposition in Queensland, the state most prone to cyclones and floods. Mayors say smaller communities will not be able to absorb rebuilding costs under the new formula.
The Australian Treasury argues that the current arrangement encourages payouts from the federal budget even for preventable risks and that a more sustainable structure is needed. The Queensland state government counters that, due to geological conditions, preventive infrastructure costs are higher than elsewhere and the proposed formula does not reflect that.
Public investment, insurance premiums and the federal budget deficit remain central in Australia's debate over how climate-change costs are shared. In the coming weeks, federal-state finance ministers' meetings, insurer premium updates and Queensland councils' financial reports will be the milestones to watch.
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