The federal government has opened the third round of its Disaster Ready Fund, which commits $200 million a year to mitigation projects, matched by states and territories.

The fund, which aims to better protect communities from the physical, economic and social impacts of worsening extreme weather, began in 2023-24 and will run until 2027-28. 

The Insurance Council of Australia has welcomed the funding but wants it confirmed for 10 years rather than five, and indexed so it does not reduce in real terms.

The Australian Local Government Association says the scheme is oversubscribed and funding should be more than doubled.

ICA said today the annual investment is “crucial” in addressing the rising risks of bushfire, flooding and cyclones.

“Insurers have long called for greater investment in significant resilience infrastructure that drives down hazard risk,” it said. “This is reflected in the updated funding allocation, with $138 million of the $200 million fund now dedicated to critical mitigation infrastructure.”

CEO Andrew Hall says the devastating LA fires are a reminder of the importance of investing in resilience.

“Smarter land use planning decisions and building more durable homes for the Australian conditions is the only sustainable way to moderate rising insurance premiums in high-risk areas,” he said.

“We look forward to continuing to engage with government on targeting resilience investment to the Australians who need it the most through the world-leading Hazards Insurance Partnership, and hope to see the Disaster Ready Fund extended to a 10-year rolling program.

“More funding will be needed over the longer term, as the longer investment is delayed, the costlier it will be for the nation.”

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