Federal government backtracks on disaster funding split

The federal government has abandoned its proposed changes to disaster recovery funding, following pushback from states and councils.

In June, the government announced plans to split disaster recovery funding 50-50 with states and territories, having previously contributed up to 75 per cent in some areas.

Queensland would have felt the biggest impact — it received $1.3 billion under the current framework in 2024-25, the highest proportion in the country.

Queensland's disaster recovery minister Ann Leahy this week wrote to Prime Minister Anthony Albanese, calling for Canberra to abandon the proposed changes.

The letter, signed by all Queensland mayors and peak industry groups, said the changes would leave communities to fund the shortfall.

Treasurer Jim Chalmers confirmed today the federal government would keep its current cost-sharing arrangements.

"This is about ensuring that the commonwealth government is providing certainty and providing funding when disaster hits," Mr Chalmers said.

"We do take seriously all of the consultation that has happened between the government, local councils, and with other organisations to make sure that we get this right."

"Our goal here is to make sure that disaster funding can be faster, that it can be adequate and that we get the funding where it is needed as quickly as possible."

Emergency Management Minister Kristy McBain thanked councils across the country for their input on the proposal.

"I want to ensure our reforms reflect the varying experiences of communities across Australia, and these changes to the reforms will ensure no community is left behind," Ms McBain said.

"The reforms will also help ensure the system is fairer, and it's easier for councils to access funding when they need it."

In a statement, Queensland Premier David Crisafulli said the prime minister had listened to Queensland's concerns and made a "commonsense decision".

"We now wait to see further details, and ensure this is delivered and funding arrangements are maintained in full, so Queenslanders can have certainty and confidence in their hour of need during disaster season," the statement said.

"Today's decision diverts disaster for the most disaster-prone state.

"We look forward to strengthening our preparedness and response ahead of disaster season, in the knowledge that there will be no changes to a formula that has worked for decades."