The Insurance Council of Australia has criticised last night’s federal budget, noting it contains “no new money” for disaster resilience.

Last month, ICA released its federal election platform document, which contained 16 suggested reforms to help tackle soaring insurance costs. Its headline recommendation was investment in a $30 billion flood defence fund.

However, the Labor government’s budget failed to address the country’s insurance or risk mitigation challenges – instead leading with a surprise tax cut and energy bill rebates.

“While we welcome the ongoing funding of the Disaster Ready Fund … we’re disappointed that it contained no new money for long-term investment in making Australia more resilient to extreme weather, in particular our most costly disaster – flood,” an ICA spokesperson said.

“While immediate relief on cost-of-living is necessary, this shouldn’t be at the expense of long-term thinking and investment.”

The Strata Community Association has also accused the budget of failing to deliver.

“While this budget offers some relief on cost-of-living and housing, it falls short on targeted support for Australia’s strata communities,” SCA president Joshua Baldwin said.

“We urgently need policies that address strata insurance affordability, sustainability initiatives and building quality. SCA will continue advocating to ensure strata living isn’t overlooked in national planning.”

Accounting body CPA Australia’s CEO, Chris Freeland, says businesses need more support on rising costs such as insurance premiums.

“SMEs – many of which have thin margins – needed a budget that would significantly alleviate the cost pressures they face every day,” he said. “The unrelenting rise in insurance premiums and the burden of utility bills, materials, wages, fuel and various other inflationary pressures are hard to manage.”

ICA says insured costs from extreme weather have reached a record $22.5 billion over the past five years. It says funding for Ex-Tropical Cyclone Alfred recovery work and other existing resilience programs is “welcome and much needed”, but more action is required.

“Driving down this risk through resilience investment will be essential to building a more resilient economy and better protecting Australian homes and businesses,” it said.

“Greater investment in flood mitigation, including the dedicated flood defence fund, will help reduce risk and ease the pressure on insurance premiums, and the Insurance Council of Australia will continue to advocate for action in this critical area early in the term of the next government.”