The fund is the centrepiece of the Insurance Council of Australia’s policy recommendations for the next Federal Government.
Released ahead of the federal election, the policy document — Advancing Australia’s Resilience — has a focus on protecting Australians from natural disasters, as well as improving insurance affordability.
Top of the Insurance Council of Australia’s wish list is a $30.15 billion Flood Defence Fund, an investment over 10 years to safeguard the country’s most at-risk catchments in Queensland, NSW and Victoria.
The fund would be jointly funded by the Federal Government and the Queensland, Victoria and NSW governments.
Twenty-four catchments across the three states that have been identified as high-risk flood areas would benefit from the funding, including the Goulburn River.
The funding would deliver new critical flood defence infrastructure, strengthen at-risk properties, help local government undertake buybacks and future-proof existing flood mitigation infrastructure.
ICA chief executive Andrew Hall said the funding would help in the midst of the cost-of-living crisis and increasing natural disasters.
“Insurance premiums have risen over the past few years through a perfect storm of high inflation, taxes and regulations, extreme weather events and ever-increasing risk factors,” he said.
The ICA’s policy document also outlines initiatives for improved outcomes, including strengthening the Disaster Ready Fund, better data and flood mapping, improving disaster response, cyclone-proofing northern Australian homes and abolishing state insurance taxes.
“If we don’t do anything, insurance customers, governments and taxpayers will continue to pick up the much higher costs of rebuilding every time there is a natural disaster and insurance risks becoming unavailable and affordable for those Australians who need protection the most,” Mr Hall said.
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