$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

Isuzu Australia Introduces Innovative Truck Leasing and Finance Services

09 Mar 2026: Paige Estritori

Isuzu Australia has announced the establishment of Isuzu Financial Services Australia (IFSA), a pioneering truck leasing and finance company set to commence operations in the third quarter of next year. This initiative marks the first time the Isuzu Group has founded such a company outside Japan, highlighting the strategic importance of the Australian market. - read more

Inattention and Speed Identified as Primary Causes of Major Truck Crashes

09 Mar 2026: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings reveal that human factors, particularly inattention, distraction, and inappropriate speed, continue to be the leading contributors to these incidents. - read more