The Victorian Government says it will complete statewide floodplain mapping within 18 months, with the data used for planning, emergency response and insurance pricing.

The project will cost $8-$9 million, it has told the Productivity Commission inquiry into disaster funding.

The Government says flood maps will also be used for mitigation and resilience programs.

Its submission to the inquiry says current natural disaster funding arrangements “are not optimal”, being hard to understand and unfair when communities affected by the same event receive different levels of assistance.

“The current arrangements also provide a disincentive to undertake natural disaster mitigation activities, such as building disaster-resilient infrastructure – known as betterment – and having robust insurance arrangements in place.”

All states and territories should use the Victorian Managed Insurance Authority as a model for reform and to manage risks, the submission says.

It says the National Insurance Affordability Initiative, which was scrapped in this year’s federal budget, should be applied to all hazards for mitigation and prevention funding.

The Productivity Commission has published 113 initial submissions, including from insurers and all levels of government. It will release its draft report in September.