The federal government had planned to slash its share of disaster recovery funding, shifting to a model that would have required states and territories to contribute half of the costs. The proposal drew heated criticism from across the country, with local leaders warning it would leave communities struggling to recover from natural disasters.
Announcing the backflip south of Brisbane, Treasurer Jim Chalmers said the Commonwealth was committed to providing certainty. "This is all about ensuring the Commonwealth government is providing certainty and providing funding when disaster hits," he told reporters.
Chalmers acknowledged the consultation process that had taken place. "We do take seriously all of the consultation that has happened between the government, with local councils, and with other organisations to make sure we get this right," he said. "Our goal here is to make sure disaster funding can be faster, it can be adequate, and we get the funding where it’s needed as quickly as possible."
The decision marks a significant reversal for the government, which had argued that the 50-50 model would bring the disaster funding arrangement in line with other cost-sharing agreements. State premiers and local government associations had warned that the change would place an unfair burden on regions already stretched by the rising frequency and severity of climate-related events.