Suncorp says the COVID-19 outbreak and Federal Government moves to boost spending to drive an economic recovery support the case for tonight’s Budget to include increased natural disaster mitigation funding.

“There is an expectation the Budget will include measures to accelerate approval and funding of infrastructure projects,” Suncorp Economist Paul Brennan said today.

“Works that improve the resilience of properties and communities to natural hazards should be strongly considered, especially those initiatives that are well progressed in terms of planning.”

Mr Brennan says this is particularly relevant for regional communities, which can be more susceptible to economic shocks such as COVID-19, lack access to quality community amenities and latest tech advances and have high natural disaster risks.

“In addition to reducing the impact of future disasters, these communities will benefit now from the economic stimulus to employment and income,” he says in an article on the company’s website.

The Federal Budget is usually handed down on the second Tuesday in May, but will be delivered by Treasurer Josh Frydenberg tonight due to a delay caused by the coronavirus pandemic.

Measures already flagged in the Budget include incentives for businesses to hire more workers and bringing forward tax cuts to boost consumer spending.

The Insurance Council of Australia (ICA) has consistently pushed for increased mitigation spending in pre-Budget submissions.

In a submission lodged before the COVID-19 pandemic escalated, it noted that just 3% of the Government’s disaster funding budget is directed at mitigation and prevention with the rest going towards recovery and clean-up actions.

“Correction of this imbalance, in a manner that incentivises a systemic approach to reducing existing community exposures and preventing future planning mistakes, should be a national priority,” ICA said.

ICA has also urged Canberra to work with the states and territories to replace insurance duties with broad-based taxes that will encourage consumers to insure their properties, reducing the burden on governments.