Fast-tracked economic relief for disaster-impacted councils

Councils across Australia will be able to fast-track local repair works following two devastating years of floods, fires and cyclones, with the Federal Government to advance nearly $1.8 billion in disaster payments to the states.

Since January 2022, jointly funded Disaster Recovery Funding Arrangements (DRFA) have been activated for 65 disasters in 332 unique Local Government Areas (LGA). This represents over 61% of Australia’s 539 LGAs recognised by the National Emergency Management Agency (NEMA).

Advance payments totalling almost $1.8 billion will be paid to the majority of states under the State and Commonwealth funded DRFA. The funding program was offered to all disaster-impacted states with reconstruction costs passing the threshold for Commonwealth contribution, with most accepting the offer.

Under the DRFA, payments are generally made after a state has submitted an audited claim for financial assistance, following reconstruction works. However, in the last two years there have been compounding, concurrent natural disasters across every state in Australia, with recovery hampered by COVID and all the challenges that have come with it. In recognition of these exceptional circumstances, the Federal Government is making these funds available up front. The payments represent 40% of the estimated amount the Federal Government would contribute under the DRFA for 2021-22 and 2022-23.

Minister for Regional Development, Local Government and Territories Kristy McBain said the funding allocation was in response to calls from the states, local governments and peak bodies.

“During the Australian Council of Local Government conference in Canberra this month, Mayors and Council representatives were clear about the growing need for more up-front help,” Minister McBain said.

“Councils are on the frontline of disasters, and we need to ensure they are adequately supported both in planning for and recovering from disasters.”

Australian Local Government Association (ALGA) President Councillor Linda Scott said the advance payments would be welcomed by disaster-impacted councils, especially in regional and remote areas.

“This fast-tracked federal funding will play a key role in helping our disaster-impacted communities recover and rebuild,” Cr Scott said.

“We have consistently advocated for the need for faster disaster recovery payments, and we are thrilled that the Government has heard our call and responded with this once-off advance payment.”