General News
13 October, 2026
Disaster recovery funding backflip
THE Federal Government has bowed to state and local government pressure and cancelled its proposed new funding split for disaster recovery.
In a statement on Friday, Treasurer Jim Chalmers said the government had conducted extensive consultation and, as a result, would retain the current cost sharing arrangements to ensure “more certain funding for communities across the country when they need it most”.
In June, the government proposed changing the current disaster funding model which would have reduced the 75-25% split between federal and states/territory governments, respectively, to a 50-50 split.
The announcement sparked widespread criticism, particularly from Queensland, which received the highest proportion of disaster recovery assistance in the country.
It included a signed letter from the state’s 77 mayors calling the government to abandon the proposed changes as ratepayers would ultimately carry the extra financial burden.
“We said we would consult widely and genuinely and we have,” Mr Chalmers said.
“Today’s announcement is the direct result of strong advocacy from councils and Queensland federal Labor colleagues.”
In a statement on Friday, Premier David Crisafulli thanked Prime Minister Anthony Albanese, for “listening to our concerns and arriving at a commonsense decision”.
“We stood alongside mayors, the Local Government Association of Queensland and councils across the state and went in to fight for Queenslanders because it was the right thing to do,” he said.
“Today’s decision diverts disaster for the most disaster-prone state.
“We look forward to strengthening our preparedness and response ahead of disaster season, in the knowledge that there will be no changes to a formula that has worked for decades.”
Mareeba Mayor Angela Toppin also applauded the decision.
“I sincerely welcome the news from the Australian Government which has listened to local councils and state governments who have advocated strongly against the plan to split the cost of the Disaster Recovery Funding Arrangements between the federal and state governments,” she said.
“This would have dramatically increased the financial burden on the Queensland Government and local councils to cover the cost of repairs to essential infrastructure damaged by disaster events.
“Mareeba Shire is a vast regional area and agricultural hub, vulnerable to flooding, cyclones, severe storms and fires. We experience severe events every season.
“At a time when communities face growing disaster risks, certainty is critical. Council needs confidence in funding to undertake resilience planning, disaster preparedness, response and recovery.
“Our community and businesses would not have been able to afford these changes, so I thank the Australian Government for reversing its decision.”
Further changes by the government included retaining the ability for councils to claim costs under Counter Disaster Operations and revised funding activation thresholds to ensure all communities get the support they need when they need it.
