NIBA's Budget Priorities: What We're Advocating For

With the Federal Budget handed down next Tuesday, NIBA has outlined five key priorities it is urging the Government to act on — each designed to strengthen insurance affordability, accessibility, and build community resilience.

Extending the Disaster Ready Fund

NIBA is calling on the Government to expand the Disaster Ready Fund (DRF) into a rolling ten-year program, indexed to inflation. The current fixed-term structure — which expires in 2028-29 — creates planning uncertainty for states and local governments, limiting the scale and ambition of mitigation projects. Without indexation, the fund's $200 million annual allocation will erode to approximately $171 million in real terms by the end of the current commitment. Research shows every dollar invested in disaster mitigation saves $13 in avoided recovery costs.

A National Household Mitigation Scheme

For communities most exposed to tropical cyclones and bushfire, community-level investment alone may not be enough. NIBA is advocating for a co-funded Commonwealth and state program to help homeowners retrofit their properties — covering measures such as roof strengthening, cyclone shutters, bushfire-resistant materials, and flood elevation works — with premium pass-through mechanisms to ensure consumers see measurable benefits.

Reforming Insurance Taxes and Levies

The compounding effect of stamp duty, emergency services levies, and GST can add up to 70 per cent to insurance premiums. NIBA is calling on the Treasurer to convene discussions with state and territory counterparts to develop a roadmap for phasing out these distortionary taxes, consistent with Productivity Commission Recommendation 14.3.

A National Emerging Risks Advisory Committee

With 67 per cent of businesses expecting to be impacted by cyber incidents yet only 20 per cent of SMEs holding standalone cyber policies, NIBA is proposing a dedicated advisory committee — housed within Treasury or Home Affairs — to provide coordinated guidance on emerging risks, with an initial focus on cyber threats.

An Audit of Regulatory Costs on General Insurance Advice

Since the Financial Services Royal Commission, cumulative compliance costs on the broking profession have continued to grow without corresponding relief. NIBA is calling for an independent audit by Treasury or the Productivity Commission to assess the regulatory cost burden on general insurance advice since 2018.

Read NIBA’s Pre-Budget submission here.