The federal government’s first budget since being elected in May provided funding to improve access to affordable insurance in disaster-prone areas and formalized a $200 million annual spending commitment for resilience and disaster recovery. ‘mitigation.
The budget provides $22.6 million over four years to help reduce the cost of insurance in disaster-prone communities.
“This funding will be used to build partnerships between government and the insurance industry. It will also improve consumer understanding of insurance products and leverage private-public initiatives to inform mitigation projects that reduce premiums for Australian households,” the budget documents state.
The Insurance Council of Australia (ICA) says a Risk Insurance Partnership will be created to provide a forum for continued collaboration, while a national data set on insurance affordability, under- insurance and non-insurance issues will be created to assist in policy decision making.
A repository of mitigation solutions will contain proven and reliable measures that can be used to reduce the risks associated with different perils, while scoping work will be undertaken to identify public-private partnership opportunities that reduce risk and exercise downward pressure on premiums.
The package also includes an intention to develop standard insurance definitions for major natural hazards.
ICA CEO Andrew Hall said that given the impacts of worsening extreme weather conditions being felt across the country, the community expects industry, governments and stakeholders work together.
” Above all, [last night’s] The announcement includes the creation of a mechanism to allow this to happen through the Risk Insurance Partnership,” he said.
“There are a lot of loose ends to iron out and we look forward to working collaboratively with federal and state governments on this great start to solving a long-term problem.”
Previously announced $200 million annual resilience spending over five years, made through the Disaster Ready Fund, will support projects such as levees, levees, cyclone shelters, evacuation centers and cuts -fire.
Budget documents show $30.4 million being allocated through the Disaster Ready Fund this fiscal year, with the commitment of $200 million per year starting next fiscal year.
RACQ’s senior economics and affordability specialist Ian Jeffreys welcomed the funding, but said the timeline was too slow.
“Queenslanders will have to endure at least two more disaster seasons before the funding brings real results,” said Dr Jeffreys.
“These funds should be spent this year to protect vulnerable communities in Queensland from growing climate impacts.”
Budget commitments related to emissions include support for electric vehicles and investments in solar power and the transmission network, while $42.6 million is allocated to restore the Climate Change Authority and an annual declaration on the climate change will be presented to Parliament.
The Actuaries Institute said the budget measures put Australia on a solid path to meet its global emissions reduction commitments and help reduce the worst risks of climate change.
“We know that vulnerable Australians are particularly at risk, for example because the most affordable housing is in the most climate-prone areas,” said CEO Elayne Grace.
“The frequency of extreme weather events and natural disasters across the country in recent years underscores the need for collaborative and urgent action to improve resilience.”
The government also announced a new National Housing Agreement between government investors and industry, which set the ambitious target of building 1 million new “well-located” homes over five years from mid-2024.
Treasurer Jim Chalmers said the economy is expected to grow 3.25% this financial year before slowing to 1.5% next year, while inflation is expected to peak at 7.75% later this year. year, before moderating over time to 3.5% and returning to the Reserve Bank’s target. range in 2024/25.