Lismore City Council is seeking changes to federal and state rules for flood buyback land, saying current restrictions could leave extensive areas unused even where non-residential uses might be possible. Under the existing federal policy, structures on buyback properties must be removed and cannot be replaced, preventing new development or changes of use.
Mayor Steve Krieg told the council’s ordinary meeting that these conditions apply in locations where people and businesses are still operating. “This policy in its current form will see several hundred vacant blocks where many residents still live, and businesses still operate. A review of this policy needs to allow council to utilise this land for best future use possible, focusing on commercial and industrial possibilities where suitable,” Krieg said. The council resolved to lobby the federal and NSW governments for a review of the policy framework and to argue for greater local input into decisions on how acquired land is managed over time.
As part of its position, the council will write to the NSW Reconstruction Authority requesting that buyback properties on Elliott Road in South Lismore be transferred to council for potential industrial and commercial use. The council has indicated it wants to examine how building design and land-use controls could be applied on the site within future precinct planning. Krieg said the city’s history of flooding has influenced its approach to land-use and recovery. “Lismore floods and that reality has forced us to become smarter, faster, and more innovative than most cities. The question now is whether policy allows us to apply that capability, or leaves land vacant in places where safe, productive re-use is possible. Leaving land vacant because it once flooded ignores the reality that smarter design and use can unlock economic value while managing risk. If council can activate inexpensive industrial and commercial land in great locations to attract business investment, we can help to create jobs and ensure a vibrant and world-leading Lismore into the future,” Krieg said. The council will also seek transfer of 14 buyback properties on Alexandra Parade, Bridge Street, Slater Street, and Flick Street to the North Coast Agricultural & Industrial Society. The land would be used to increase off-street parking capacity for major events at the Lismore Showgrounds. The motion moved by Krieg passed 6–4. Four councillors opposed the proposal, and one councillor was not present for the vote.
Council Strategic Planning Coordinator Jamie van Iersel said the state’s Resilient Homes Program is reshaping Lismore’s land-use pattern and risk distribution. “To date, there have been 655 approved buybacks within Lismore, representing around 40 fragmented hectares of what could become grass under this policy,” van Iersel said. She said the extent of buybacks in Lismore differs from other locations and “requires distinct consideration and individualised policy response from the government.” While residential development is no longer supported on these sites, van Iersel said “there are some suitable areas in which commercial, industrial, and/or community uses could be safely provided.”
van Iersel added: “Lismore City Council, together with the NSW Reconstruction Authority and our local community, under a structure Precinct Planning process, are capable and best placed to determine the future use of all buyback land within our own LGA. Together, we have started this process and will be engaging skilled consultants to assist in determining the best future use for all buyback properties, balancing risk with community and economic need and aspiration.” For insurers and brokers, any shift from residential to non-residential uses on high-risk land would alter exposure concentrations, potential loss severity, and demand for commercial property and business interruption cover in the Lismore market.
Lismore is among Australia’s most flood-exposed urban centres, with its location on the Wilsons River contributing to a long record of inundation. The city’s highest recorded flood occurred on Feb. 28, 2022, when the river reached 14.4 metres at the Lismore gauge, exceeding previous peaks of 12.11 metres in 1954 and 1974. In March 2017, flood levels reached 11.6 metres. Between March 6 and 10, 2025, heavy rainfall associated with Tropical Cyclone Alfred saw the river peak at 9.31 metres, just below the 9.70‑metre major flood level, leading to flooding in the central business district and nearby residential areas, evacuation orders, and multiple rescues.
Following the 2022 event, the council created a Flood Restoration Portfolio to coordinate rebuilding and upgrades to roads, bridges, and landslips; sporting, cultural, and community facilities; water and wastewater networks; and flood resilience infrastructure, including levees and drainage systems. The portfolio also incorporates mechanisms for local engagement and workforce participation as part of ongoing recovery and adaptation.
The Lismore debate over post-buyback land use is unfolding against ongoing industry concern about insurance affordability in flood- and cyclone-affected regions. In a November 2025 submission to the statutory review of the Terrorism and Cyclone Insurance Act 2003, the Insurance Council of Australia (ICA) said greater emphasis on physical resilience and risk mitigation is needed to put “sustainable downward pressure on insurance costs.”
The ICA said that as cyclonic events continue to intensify, increased investment in resilience and mitigation is “critical to safeguard communities and deliver long-term insurance affordability.” The council has also highlighted the affordability of flood insurance as a persistent issue, noting that 1.36 million properties across Australia face some level of flood risk. For underwriters and intermediaries, the interaction between buyback programs, local land-use policy, infrastructure investment, and mitigation initiatives in centres such as Lismore is likely to be a continuing factor in pricing decisions, capacity allocation, and product design for high-hazard regions across the Australian market.
