The Australian government has allocated $200 million for 96 projects related to disaster management in all states and territories. This funding, part of round three of the $1 billion Disaster Ready Fund (DRF), is supplemented by contributions from state, territory, and local partners, with total funding approaching $350 million.
The DRF is a government program focused on disaster mitigation. The current funding round will support projects such as bushfire risk reduction, flood protection, cyclone shelter construction, and the implementation of hazard warning systems.
According to Minister for Emergency Management Kristy McBain, the third round of the DRF continues previous government initiatives addressing natural disasters. “Australians are no stranger to the floods, bushfires, and cyclones that impact us year-on-year – that’s why the Albanese government established the Disaster Ready Fund, providing up to $1 billion over five years,” McBain said.
Of the total funding, more than $138 million is allocated to 41 infrastructure projects, with construction scheduled to begin immediately. According to the government, projects have been assigned across all 538 local government areas, with selection based on region-specific risks.
In the third round of the DRF, $594,000 is allocated for an Emergency Coordination Facility in Alice Springs, Northern Territory. New South Wales is allocated $14.17 million for the Narrandera Urban Stormwater Upgrade, intended to address flood risk. Western Australia will receive $895,114 for ranger capacity related to wildfire management, and Victoria is allocated $6.45 million for flood levees in Numurkah.
Other projects in this round include a cyclone shelter and evacuation centre on Palm Island, Queensland, with $14.62 million in funding, and $1.6 million allocated for flood infrastructure in Balaklava, South Australia. Tasmania’s Launceston Flood Mitigation Plan is allocated $540,000, and the Australian Capital Territory is allocated $421,240 for a new flash flood warning system. McBain said that the third round brings total DRF investment to $600 million. “I’d like to thank many of the project proponents for matching our funding,” she said.
Insurance Australia Group (IAG) acknowledged the government’s recent allocation for disaster preparedness. IAG managing director and CEO Nick Hawkins said: “IAG has long advocated for greater investment in mitigation initiatives to help protect lives, property, businesses, and critical infrastructure before disasters strike.” He added that the DRF, along with contributions from various levels of government, is intended to help communities at higher risk of severe weather events. “Mitigating against the impacts of climate change must continue to be a priority for Australia, and [the] announcement is another important step forward,” Hawkins said.
IAG stated that the new funding is intended for projects related to community preparedness, evacuation infrastructure, and property risk management. The company also plans to continue working with the federal government’s Hazards Insurance Partnership (HIP) on disaster risk reduction and insurance-related issues.
The announcement follows the publication of IAG’s third edition of the Severe Weather in a Changing Climate report, developed with the US National Science Foundation’s National Center for Atmospheric Research. The report states that climate change is affecting the frequency, intensity, and distribution of severe weather in Australia, with noted risks from short-duration rainfall, flash flooding, fire weather, and large hailstones in populated areas.
Since 2020, Australia has experienced 14 declared catastrophes and eight significant weather events. Insurers have paid $22.5 billion in claims for extreme weather over the past five years, a 67% increase compared to the previous five-year period.
Government and industry representatives have noted the need for ongoing investment in disaster risk reduction and climate adaptation in relation to insurance market stability.
