Queensland has allocated $9.3 billion for disaster recovery as it rebuilds following widespread flooding.

The money will be spent over three financial years from the current one.

The state will spend $1.9 billion rebuilding roads and public transport infrastructure next financial year, according to its latest budget.

It will also put $40 million, matched by the Federal Government, in a “betterment fund”.

“There are obviously sound economic and public-finance reasons to advocate for a new approach to disaster funding,” Treasurer Tim Nicholls said in his budget speech.

“We are about to repair some infrastructure for the second and third time in 10 years.”

The cost to the state of natural disasters since 2010 is now more than $13.8 billion.

“This represents enough funds to have built two cross-river rail projects and a second range crossing for Toowoomba, or $3010 per man, woman and child,” Mr Nicholls said.

The cost of rebuilding after Tropical Cyclone Oswald and associated flooding this year is estimated at $2.5 billion, of which the State Government pays about 25%, the Queensland Reconstruction Authority says.

The sum includes $900 million for roads, $277 million for state assets and assistance and $1.34 billion for local government assets.

Disasters this year have damaged more than 4300 properties, left 390,000 homes and businesses without power, damaged 3100km (43%) of the state rail network and affected 7400km (22%) of state-controlled roads.

Mr Nicholls also confirmed that Queensland has increased duty on general insurance premiums from 7.5% to 9% in response to falling revenue.

The new rates will apply to premiums paid on or after August 1 for policies entered on or after that date.

“Queensland’s insurance duty regime will, along with NSW, remain competitive with other states,” Mr Nicholls said.

The new rate will be equal to the standard rate in NSW and lower than all other states, the budget papers say.

The rise is expected to provide an extra $195 million in the next financial year, which will aid the state’s contribution to the national disability insurance scheme.

Insurance duties are forecast to raise $615 million this financial year and $871 million in 2013/14, increasing to $1.12 billion by 2016/17.

The state has not increased the duty rate for workers’ compensation or compulsory third-party motor insurance.

Queensland’s Motor Accident Insurance Commission has reported an estimated operating surplus of $19.98 million for this financial year, forecast to drop to $9.6 million in the next.