THE Federal Government has scrapped a proposed 50-50 split in disaster recovery funding after Queensland’s 77 mayors and the State Government warned it would leave communities carrying a bigger rebuilding bill.
The proposed Disaster Recovery Funding Framework, unveiled in June, would have replaced existing cost-sharing arrangements with an equal split between Canberra and the states.
Instead, the Commonwealth will retain the current model, which provides up to 75 per cent of eligible disaster recovery costs when funding criteria are met.
Ipswich Mayor Teresa Harding welcomed the decision, saying the Federal Government had listened to concerns raised locally and across the state.
“I welcome the Federal Government’s decision not to proceed with the proposed changes to Disaster Recovery Funding Arrangements and thank the Prime Minister for listening to concerns raised by Ipswich City Council and councils across Queensland,” Mayor Harding said.
Under existing arrangements, Canberra contributes an average of about 64 per cent of Queensland’s disaster recovery costs, rising to 75 per cent for some categories of assistance.
Queensland councils and the State Government warned the proposed change would shift millions of dollars in costs onto communities already recovering from cyclones, floods, bushfires and severe storms.
All 77 Queensland mayors called for the proposal to be scrapped. The Local Government Association of Queensland also lodged a detailed submission warning regional councils could be forced to delay repairs to roads, bridges and other vital infrastructure.
The Federal Government had argued the framework would simplify claims, reduce red tape and deliver support faster.
Queensland leaders countered that a fixed funding split would leave the nation’s most disaster-prone state worse off.
Premier David Crisafulli welcomed Friday’s announcement.
