Victorians living in flood and bushfire-prone areas can now cut their losses with the option to sell off their land to the State Government.

The buy-back scheme announced last week as part of the Coalition’s first state budget includes $5 million for the acquisition of land in high-risk bushfire areas plus a further $12 million for flood-ravaged areas of northern Victoria.

This will allow the government to buy back land in areas considered to be at “unacceptably high risk of being destroyed by bushfire”.

While not compulsory, Bushfire Response Minister Peter Ryan says it will give eligible bushfire survivors who are either unable or unwilling to rebuild the chance to move on.

The State’s Water Minister Peter Walsh says the buy-back plan for areas of Kerang and Benjeroop will allow the government to reinstate the floodplain and develop a management regime.

“Land purchased by the state will either become part of the public land estate or resold under a flood overlay,” he said.