The NSW government’s disaster response expenditure blew out to $2.5 billion in the 18 months to December 31 as storms and severe floods damaged roads, bridges, waste collection centres and other essential services facilities, and large grants were allocated. 

Natural disasters damaged almost $350 million worth of infrastructure owned by more than 80 NSW councils in fiscal 2022, an audit published by NSW Auditor-General Margaret Crawford says. 

“Additional staff, contractors and experts were engaged to restore and repair damaged assets and minimise disruption,” the report said.  

"Councils reported higher operating and maintenance costs to clean-up local government areas and restore services, undertake stormwater maintenance and manage coastal and foreshore areas.”  

Spending by the state more than doubled to $1.4 billion in the 12 months to mid 2022, up from $585 million a year earlier.  

A further $1.1 billion was spent in July-December last year, including more than $200 million to restore and repair roads and infrastructure, $400 million in grants to farmers, small business and communities, and almost $200 million for temporary accommodation. 

In the severely flood-hit Northern Rivers region, write-offs, damage and repairs to infrastructure came to $247 million, with Lismore City Council alone accounting for 43%. The Sydney Metropolitan region received $28.8 million across 15 councils. 

There were 29 natural disasters declared during the past two financial years, most significantly in March and November 2021, and February, June and September last year. Many local government areas were impacted by multiple separate events.   

The NSW and Federal Governments have jointly committed an additional $2.6 billion in 2025–26 to support impacted communities and better prevent, prepare for, respond to, and recover from future natural disasters.  

That includes $1.1 billion in grants and support funding to communities, business and councils impacted by flood events last year, $800 million for the Resilient Homes Fund to improve high-risk flood areas, and $500 million for a Regional and Local Roads Repair Program. 

During 2021–22, councils received $162 million in grant funding from the Australian and NSW governments and $10.5 million from other sources such as insurance recoveries. 

The audit results come as the Federal Government announces 187 projects that will receive $200 million from the mitigation-focused Disaster Ready Fund (DRF) to defend against future floods, cyclones and other natural perils. 

States and territories will match the Commonwealth funding in what the Insurance Council of Australia says “marks a new era” in resilience investment. 

A range of projects like flood levees and hazard warning systems were put forward, in collaboration with local councils and community groups. 

Under the DRF scheme the Government will be investing up to $1 billion over the next five years – $200 million annually and matched by states and territories. For every dollar spent, there is an estimated $9.60 return on investment. 

Queensland was allocated $84 million of federal funds, while NSW has 19 projects that qualified for the first round, including one to reduce flood and erosion risks in the Lismore river catchment.