The Federal Government has announced the list of 187 projects that will receive $200 million from the mitigation-focused Disaster Ready Fund (DRF) to shore up the country’s defences against future floods, cyclones and other natural perils.

States and territories will match the Commonwealth funding, bringing the total spend to nearly $400 million as the Insurance Council of Australia (ICA) says the financial commitment “marks a new era” in resilience investment.

“For many years the insurance industry has focused its advocacy on government investment to improve community resilience to worsening extreme weather, and today we are seeing this hard work pay off for Australian communities,” ICA CEO Andrew Hall said.

The 187 projects conclude the first round of funding applications from the five-year $1 billion DRF – created by the Albanese Government to replace the Emergency Response Fund, which ends on June 30.

More than 300 applications were submitted across all states and territories.

Over the weekend the DRF first funding announcement was made, with $20 million going to Queensland to improve the resilience of properties in cyclone-prone areas. Today the full list was announced.

State and Territory governments submitted applications for a range of projects like flood levees and hazard warning systems, in collaboration with local councils and community groups.

“As we continue to fund disaster recovery and specific resilience programs in areas which have suffered disasters recently, it’s critical we do more to build defences right across Australia, to better protect communities and their regional economies,” Minister for Emergency Management Murray Watt said today.

He says “urgent… decisive action” was needed after close to 70% of Australians were affected by storms, floods, cyclones and bushfires in last year.

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 – on projects that would reduce disaster risk, help to reduce recovery costs and strengthen community resilience, Mr Watt said.

“This is about more than just bricks and mortar. We know that every dollar spent on disaster resilience and mitigation delivers a return on investment to governments and households nine times over.”

For every dollar spent on disaster risk reduction, there is an estimated $9.60 return on investment, the National Emergency Management Agency (NEMA) says. NEMA will work with each jurisdiction to negotiate funding agreements with funds to be provided as soon as possible from July 2023 and the winning projects must be completed within three years.

ICA says more can be done given the threat of climate change. It again urged the Government to consider extending the DRF to a 10-year rolling program and for the funding to be indexed so it doesn’t fall in real terms.

“The cost of worsening extreme weather is impacting the affordability and availability of insurance in some parts of Australia, and we know a key lever to improving insurance outcomes is reducing or mitigating the risk that is present,” Mr Hall said.

“We need to see this same level of funding for at least the next 10 years to ensure that Australians receive the full benefits of resilience and mitigation investment, including stabilising insurance premiums in areas at high risk of extreme weather.”

Queensland-based motoring club and insurer RACQ says the $84 million of federal funds allocated to the state in today’s announcement will help “future-proof” at-risk communities.

“RACQ and other groups have repeatedly called for Queensland to get its fair share and the Federal Government has answered the call,” GM Advocacy Joshua Cooney said.

“It’s great to see Queensland’s growing climate risk being taken seriously with 42% of this national fund being allocated to our state alone, which is double our share of the national population (20%).”

He says projects that have significant impacts on risk are the only way governments, insurers and communities will “turn the dial on insurance affordability and accessibility”.

Today’s announcement means Queensland will benefit from over $150 million in combined investment into disaster prevention through the Federal, State and delivery partner co-contributions.

NSW has 19 projects that qualified for the first round of DRF application, including one to reduce flood and erosion risks in the Lismore river catchment on the North Coast.

“As we continue to fund disaster recovery and specific resilience programs in areas like the Northern Rivers and Central West, it’s critical we do more to build defences right across the state,” Mr Watt said.

Click here for the 187 projects.