The Queensland Government expects revenue from insurance taxes to grow 5.9% to $938 million in 2015/16, budget papers show.

The figure excludes life insurance duties but includes taxation of life insurance riders, or income protection cover that is often a standard inclusion in a life policy.

The Queensland Reconstruction Authority will get $408.9 million for recovery, reconstruction and betterment projects relating to Cyclone Marcia and other natural disasters between 2013 and this year.

The Federal Government will fund up to 75% of the amount under the Natural Disaster Relief and Recovery Arrangements.

The Insurance Council of Australia (ICA) has welcomed a $63 million state government allocation for mitigation and infrastructure, with $40 million to establish a community resilience fund to support local councils and $23 million to rebuild infrastructure.

CEO Rob Whelan says it is a positive step for a state with high exposure to extreme weather, although ICA believes the Government must prioritise mitigation and resilience this decade if vulnerable communities are to remain prosperous.

IAG has also welcomed the $40 million fund.

EGM Product and Underwriting Tracy Green says several communities are still recovering from natural disasters. “This new funding will help local government to better protect local infrastructure, homes, businesses and communities.”

Business, government and community leaders acknowledge the value of collaboration in building disaster resilience.

“Last year NRMA Insurance worked with Rockhampton Regional Council to help it on the benefits and costs, including the insurance impact, of investing in flood mitigation infrastructure,” Ms Green said.

ICA says it is disappointed that state taxes on insurance remain unchanged and the budgeted revenue increase is more than double the forecast 2.5% rate of inflation.

“A typical Queensland household pays $135.23 in stamp duty on home and contents insurance and $55.04 on a motor vehicle policy, excluding GST,” Mr Whelan said.