By Sonia Isaacs
THE Queensland Government has rejected proposed changes to the nation’s disaster recovery funding arrangements, warning they would shift billions of dollars in additional costs onto the state, while the Federal Government insists the reforms will create a fairer, faster and more sustainable system.
The clash comes after Sunshine Coast Council and other agencies raised concerns the proposed changes could ultimately leave councils and communities facing greater financial pressure as natural disasters become more frequent and severe.
The National Emergency Management Agency has proposed replacing the current Disaster Recovery Funding Arrangements (DRFA) with a new Disaster Recovery Funding Framework based on a 50-50 cost-sharing model between the Commonwealth and states and territories following major disasters.
The proposal follows recommendations from the Independent Review of Commonwealth Disaster Funding, known as the Colvin Review, and is currently open for consultation with states and territories until July 31.
Queensland Reconstruction Authority (QRA) said the State Government did not support the proposed reforms, arguing Queensland would lose billions of dollars in Commonwealth assistance despite being Australia’s most disaster-prone state.
“The Queensland Government does not support the changes proposed to Disaster Recovery Funding Arrangements announced recently by the Commonwealth,” a QRA spokesperson said.
The authority said Queensland had claimed $8.7 billion in disaster recovery funding since 2023-24, with the Commonwealth contributing $5.87 billion under the existing arrangements.
Under the proposed 50-50 funding model, the Commonwealth contribution would have fallen to $4.36 billion, increasing Queensland’s share by approximately $1.5 billion, or 53 per cent.
The QRA warned the reforms would intensify financial pressures on state and local governments, constrain reconstruction programs and increase the likelihood of delayed repairs to damaged roads, bridges and community infrastructure.
It also noted the Colvin Review itself did not specifically recommend moving to a 50-50 funding split.
Queensland said it would continue advocating for changes to ensure disaster-affected communities were “not left worse off” under any new funding model.
However, Federal Emergency Management Minister Kristy McBain defended the proposal, saying the current funding system required reform after years of feedback from governments and councils. “Our proposed new Disaster Recovery Funding Framework responds to recommendations from the Independent Review of Commonwealth Disaster Funding,” she said.
“We’ve heard through the review and through years of comprehensive engagement with councils, state and territory governments that the current system needs to be fixed.”
Ms McBain said the reforms would simplify funding processes while embedding an equal partnership between the Commonwealth and state governments through a 50-50 funding model.
She said the changes would also allow governments to invest more heavily in disaster mitigation and resilience projects before disasters occurred. “We’ve also got to start investing more in risk reduction because we know that will reduce the impacts on communities, drive down the costs of insurance and save all governments money over time,” she said.
Ms McBain said the Commonwealth would continue supporting Queensland after natural disasters and maintained the state would still receive the largest share of disaster funding based on historical disaster activity.
Sunshine Coast Mayor Rosanna Natoli said the proposed funding model had significant implications for the region. Council has received about $73.5 million in DRFA funding over the past five years, including approximately $57 million following the 2022 floods and more than $16 million after Tropical Cyclone Alfred.
Under the proposed 50-50 funding split, the Commonwealth and Queensland would each contribute about $36.75 million toward those recovery costs. Under the current arrangements, the Commonwealth contributes about 64 per cent, or roughly $47 million, meaning the proposed model would transfer an additional $10 million burden to the Queensland Government for those events.
Mayor Natoli said if the State Government could not absorb those additional costs, communities could ultimately face reduced disaster recovery funding or increased financial pressure.
She also warned scientific advice from the CSIRO, Bureau of Meteorology and the Queensland Government indicated climate change was increasing the frequency and intensity of extreme weather events, placing growing pressure on disaster recovery funding and infrastructure.