$30 Billion Flood Defence Fund Proposed in Election Agenda
$30 Billion Flood Defence Fund Proposed in Election Agenda
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Insurance Council of Australia (ICA) has unveiled its election platform, urging the federal government to significantly enhance flood defences by establishing a $30.15 billion flood defence fund.
This initiative, highlighted as the primary recommendation, seeks to mitigate the catastrophic impact of floods, which are deemed as Australia’s most financially damaging natural disaster.
According to ICA’s proposal, the flood defence fund would be strategically allocated over a ten-year period, with financial responsibilities shared between federal, New South Wales, Queensland, and Victorian governments, as these areas have been identified with the highest flood exposure. The allocation plan includes $15 billion for new flood defence infrastructure, $5 billion to reinforce vulnerable properties, $10 billion for property buyback schemes, and $150 million invested in enhancing current flood mitigation infrastructure.
In addition to flood management, the ICA's platform outlines reforms across various areas, such as optimizing land use planning, introducing rigorous regulatory measures, enhancing building resilience, ensuring consistent investment in the Disaster Ready Fund, and addressing ongoing challenges within the motor repair sector.
As ICA CEO Andrew Hall articulates in the report’s introduction, the previous year saw Australia’s general insurance sector underpinning household and business stability with 41 million policies issued and claims exceeding $32 billion. However, he warns that escalating risks and costs are undermining the affordability and effectiveness of insurance, further compounded by the current cost-of-living crisis, which intensifies pressures on both families and businesses. Hall emphasizes that addressing these issues is imperative and requires decisive action.
The proposed fund is crucial as it directly addresses the financial burdens associated with flood damage, which can devastate community infrastructure, homes, and businesses. By investing in preventive and mitigative measures, the fund aims to reduce the frequency and severity of flood impacts, potentially lowering insurance premiums in high-risk areas and enhancing the overall resilience of Australian cities and towns.
If adopted, the fund could lead to substantial infrastructure projects in flood-prone regions, enhancing community protection and possibly setting a precedent for future climate adaptation policies. The insurance sector, along with state and federal governments, will need to collaborate closely to ensure effective implementation of proposed measures. Additionally, the emphasis on regulatory improvements and infrastructure resilience signals a broader push towards sustainable urban development, aligning economic security with environmental stewardship.
Published:Tuesday, 4th Mar 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Australian insurers are actively revising their investment portfolios in response to evolving geopolitical events and economic conditions. According to the 2025 Australian Insurance Report by Janus Henderson Investors, 47% of insurers plan to increase their investment portfolio risk over the next 12 months, with a significant focus on private markets. - read more
In June 2025, the Australian Financial Complaints Authority (AFCA) ruled in favour of a policyholder in a dispute over the duration of income protection payments. The case involved Resolution Life Australasia and centred on the insurer's decision to cease payments earlier than the policyholder expected. - read more
In October 2025, Swiss Re, a leading global reinsurer, announced a temporary halt on accepting new life insurance business in Australia. This decision aims to address concerns over the sustainability of Total and Permanent Disability (TPD) products in the market. - read more
Recent data from the Council of Australian Life Insurers (CALI) reveals a significant increase in mental health-related claims within Australia's income protection insurance sector. In 2024, mental health conditions accounted for 20% of income protection claims, resulting in payouts totaling $887 million. This marks a substantial rise compared to previous years, indicating a growing trend that insurers and policyholders must address. - read more
Australian Super, the nation's largest superannuation fund, is facing criticism over significant delays in processing insurance claims. Reports indicate that some members have experienced prolonged waiting periods, with delays extending up to four years in certain cases. These delays have raised concerns about the efficiency and fairness of the fund's claims handling processes. - read more
When the unexpected strikes, such as an illness or injury hindering our ability to earn a living, the financial repercussions can be devastating. This is where income protection insurance becomes a pivotal part of our financial safety net, ensuring a stream of income during challenging times. - read more
Income protection insurance is an essential component of financial security for Australians, designed to provide a safety net by replacing a portion of your income if you're unable to work due to illness or injury. Despite its critical role in safeguarding livelihoods, it's often overlooked in personal financial planning. - read more
An income insurance policy, often referred to as income protection insurance, is a financial safety net designed to provide you with a steady income stream if you're unable to work due to illness or injury. It ensures that you can still support yourself and your family, even when unforeseen medical conditions prevent you from earning a salary. This policy typically covers a percentage of your pre-tax income, helping to alleviate the financial burden during recovery periods. - read more
When illness strikes, the impact on your finances can be as significant as on your health. Maintaining continuous income flow during such times is crucial for financial stability. - read more
Income protection insurance is a type of insurance policy designed to provide you with a continuous flow of income in case you are unable to work due to illness or injury. It's a safety net that helps ensure you can maintain your standard of living, even when unforeseen health issues arise. - read more
Start Here !
Apply now for your free Insurance assessment and price comparisons!
