The Insurance Council of Australia (ICA) has encouraged Victoria to mirror schemes in NSW and Queensland in which governments buy back homes facing the highest flood risk.

In a submission to the Victorian Government’s inquiry into climate resilience, ICA says investment is required at community level, including floodways and levees, but also household level.

“Home buyback schemes are important tools for governments to reduce risk, particularly in areas which pose the greatest risk to life, such as floodplains,” ICA says.

“Greater government funding is required for pre-emptive buybacks, underpinned by long-term thinking to identify where the most at-risk communities are, and how they can best be moved out of harm’s way.

“The Victorian Government should consider ... implementing a program similar to those established in Queensland and NSW.

“In those jurisdictions … funding is being deployed to buy back homes within the most extreme exposure zones and raising/retrofitting homes in lower (but still unacceptable) exposure areas.”

ICA says the Government should also adopt a risk-based approach to land use planning, to protect lives and properties as the climate changes. 

“Comprehensive reviews of land use planning arrangements should be undertaken which consider both the likelihood and consequence of extreme weather events, including flooding.”

Click here to read the full submission.