$30 Billion Flood Defence Fund Proposed in Election Agenda

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia (ICA) has unveiled its election platform, urging the federal government to significantly enhance flood defences by establishing a $30.15 billion flood defence fund.

This initiative, highlighted as the primary recommendation, seeks to mitigate the catastrophic impact of floods, which are deemed as Australia’s most financially damaging natural disaster.

According to ICA’s proposal, the flood defence fund would be strategically allocated over a ten-year period, with financial responsibilities shared between federal, New South Wales, Queensland, and Victorian governments, as these areas have been identified with the highest flood exposure. The allocation plan includes $15 billion for new flood defence infrastructure, $5 billion to reinforce vulnerable properties, $10 billion for property buyback schemes, and $150 million invested in enhancing current flood mitigation infrastructure.

In addition to flood management, the ICA's platform outlines reforms across various areas, such as optimizing land use planning, introducing rigorous regulatory measures, enhancing building resilience, ensuring consistent investment in the Disaster Ready Fund, and addressing ongoing challenges within the motor repair sector.

As ICA CEO Andrew Hall articulates in the report’s introduction, the previous year saw Australia’s general insurance sector underpinning household and business stability with 41 million policies issued and claims exceeding $32 billion. However, he warns that escalating risks and costs are undermining the affordability and effectiveness of insurance, further compounded by the current cost-of-living crisis, which intensifies pressures on both families and businesses. Hall emphasizes that addressing these issues is imperative and requires decisive action.

The proposed fund is crucial as it directly addresses the financial burdens associated with flood damage, which can devastate community infrastructure, homes, and businesses. By investing in preventive and mitigative measures, the fund aims to reduce the frequency and severity of flood impacts, potentially lowering insurance premiums in high-risk areas and enhancing the overall resilience of Australian cities and towns.

If adopted, the fund could lead to substantial infrastructure projects in flood-prone regions, enhancing community protection and possibly setting a precedent for future climate adaptation policies. The insurance sector, along with state and federal governments, will need to collaborate closely to ensure effective implementation of proposed measures. Additionally, the emphasis on regulatory improvements and infrastructure resilience signals a broader push towards sustainable urban development, aligning economic security with environmental stewardship.

Published:Tuesday, 4th Mar 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Businesses Advocate for Reforms Amid Rising Insurance Premiums

01 Dec 2025: Paige Estritori

The Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, has released a report highlighting the urgent need for coordinated reforms to address the escalating insurance premiums affecting small and medium-sized enterprises (SMEs). The report underscores that soaring premiums are compelling many SMEs, including beauty salons, to either forgo insurance or reduce coverage, posing significant risks to their operations. - read more

AFCA Determines Home-Based Waxing Salon Is a Business

01 Dec 2025: Paige Estritori

The Australian Financial Complaints Authority (AFCA) recently ruled that a home-based waxing salon operated by a Suncorp customer constitutes a business, not merely a hobby. This decision has significant implications for beauticians managing home-based operations, particularly concerning insurance disclosures and compliance. - read more

ASIC Announces 2025 Focus on Insurance Pricing and Claims Handling

01 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has unveiled its enforcement priorities for 2025, placing a significant emphasis on insurance pricing practices, claims handling, and complaints processes. This initiative aims to enhance consumer protection and ensure fair practices within the insurance industry. - read more