Funding for disaster and cyber resilience in the latest Federal budget, and an easing of the compliance burden for general insurers, has been welcomed by the industry.  

Treasurer Jim Chalmers handed down his second national budget last week.

In 2023/24, the Government will provide $200 million through the Disaster Ready Fund (DRF) to support projects like levee upgrades, seawalls and bushfire risk reduction projects. More than $236 million has also been set aside over the next 10 years to address risks in Australia’s flood gauge network and access to reliable flood warnings.  

The government had already committed to spending $200 million a year for five years, matched by states and territories, but the Insurance Council of Australia (ICA) wants it to be extended to a 10-year rolling program.

Also commended was $46.5 million allocated over the next four years to bolster cyber security, and a commitment to legislation to simplify the tax reporting process and reduce compliance costs for general insurers.

A new cell broadcast National Messaging System will be rolled out to enhance how emergency messages are delivered, and $8.6 million will be invested to generate a National Emergency Management Stockpile for rapid access to critical disaster resources.  

Reducing physical risks to homes and communities is “critical for taking pressure off insurance costs,” ICA CEO Andrew Hall said.

“The ICA is steadfast in its advocacy to see significant and ongoing investment in measures to reduce risk, protect communities and ultimately reduce insurance premiums for households and businesses … to see a more resilient Australia.”

Tax law amendment was “a welcome relief for the general insurance industry,” BDO Tax Partner Ali Bolbol says, after a misalignment between the tax law and new accounting standard for general insurers caused anxiety and concern.

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