A Queensland budget focused on cost-of-living savings has “glaringly failed to address” insurance affordability, a consumer group says, with the state also offering little new on mitigation and resilience.

The Australian Consumers Insurance Lobby has campaigned for the state to scrap the 9% duty on policies including car, home, contents and business cover, or to direct the funds towards disaster mitigation and resilience spending.

“North Queensland residents and those grappling with extreme affordability issues should be outraged by the Queensland government’s inaction and lack of attention to this critical issue,” ACIL Chair Tyrone Shandiman said today.

“The government's failure to address insurance affordability has cemented Queensland’s status as the most uninsurable and unaffordable state in Australia.”

Budget papers released yesterday show insurance duties will rise to $1.65 billion next financial year from $1.53 billion. They will increase to $1.76 billion in 2025-26 and $1.94 billion in 2027-28. 

The Queensland Reconstruction Authority will allocate $38.2 million next year as part of $95.4 million of spending over three years on high-priority resilience and mitigation infrastructure projects, jointly funded by the state and federal governments “from Disaster Recovery Funding Arrangements efficiencies”.

The $10 million North Queensland Natural Disaster Mitigation Program will allocate $2 million to help local governments in north and Far North Queensland reduce disaster risk and assist in easing insurance costs for the community, the budget papers say.

RACQ GM of advocacy Joshua Cooney says the insurer is still examining the budget but allocations for disaster resilience and mitigation appear to be largely business as usual.

“We know Queensland will remain the most vulnerable state when it comes to climate impacts, which will put further pressure on the cost of insurance for many Queenslanders,” he told insuranceNEWS.com.au.

“Extreme weather events are just part of the norm for Queensland now; we need to adapt, we need to boost our preparedness, and that means boosting our investments in these areas.”

Queensland had a wet summer with heavy downpours and several severe weather events, including impacts from Tropical Cyclone Jasper.

In a section on physical and sexual abuse insurance, out-of-home care and youth homelessness services, the budget allocates $623,000 next year to support development of a long-term indemnity scheme and scoping for an appropriate record-keeping system.

“This is in response to the withdrawal of physical and sexual abuse insurance cover for funded out-of-home care and youth homelessness providers,” budget papers say.

The Labor government, which faces an election on October 26, has highlighted $3.7 billion in cost-of-living measures including power bill support, $200 vouchers for children to participate in sport and recreation, and a flat fare of 50c across the Translink public transport network for six months from August 5.