The Federal Government will advance nearly $1.8 billion in disaster payments for New South Wales, Queensland, South Australia, Tasmania and Western Australia, under the federal and state-funded Disaster Recovery Funding Arrangements (DRFA).
The announcement provides a welcome relief for councils, who will be able to fast-track repairs of roads and essential public assets following two devastating years of floods, fires and cyclones. It has also prompted criticism from the Victorian peak body for local government, the Municipal Association of Victoria (MAV).
Since January 2022, jointly funded DRFA have been activated for 65 disasters in 332 unique Local Government Areas (LGA).
This represents over 61 per cent of Australia’s 539 LGAs recognised by the National Emergency Management Agency (NEMA).
The funding program was offered to all disaster-impacted states with reconstruction costs passing the threshold for federal contribution, with most accepting the offer.
Under the DRFA, payments are generally made after a state has submitted an audited claim for financial assistance following reconstruction works.
However, in the last two years, Australia has seen concurrent natural disasters across every state, with recovery hampered by the pandemic.
In recognition of these circumstances, the Federal Government is making these funds available up front.
The payments represent 40 per cent of the estimated amount the Federal Government would contribute under the DRFA for 2021-22 and 2022-23.
Federal Minister for Regional Development, Local Government and Territories, Kristy McBain, said the funding allocation was in response to calls from the states, local governments and peak bodies.
“During the Australian Council of Local Government conference in Canberra this month, mayors and council representatives were clear about the growing need for more up-front help, and I’m very pleased the Albanese Government has been able to deliver that so quickly,” Ms McBain said.
“Councils are on the frontline of disasters, and we need to ensure they are adequately supported both in planning for, and recovering from, disasters.”
ALGA reacts
Australian Local Government Association (ALGA) President, Councillor Linda Scott, said the advance payments would be welcomed by disaster-impacted councils, especially in regional and remote areas.
“This fast-tracked federal funding will play a key role in helping our disaster-impacted communities recover and rebuild,” Cr Scott said.
“We have consistently advocated for the need for faster disaster recovery payments, and we are thrilled that the government has heard our call and responded with this once-off advance payment.
“It’s also fantastic to see this announcement is a direct and positive response to the Government re-establishing the Australian Council of Local Government.”
MAV criticises Victorian Government
The Victorian Government is the only state to have refused the Federal Government’s offer to bring the funding forward, leading to criticism from MAV.
MAV President Cr David Clark, said, “I am straight out angry, thinking the government doesn’t get the pain our affected communities are living through. It’s one thing to kick down on councils, but our only reason for being is to look after the people in our communities. Denying them this money is completely unacceptable.
“The State Government must afford Victorian communities the same opportunities as those in other states to bounce back from floods. Its refusal of this funding is a devastating setback for every community already doing it tough.
“Nine months on from the floods, roads are still severely damaged, people are still living in temporary accommodation and communities are dealing with high levels of stress and trauma. We know recovery is a slow process, but this decision prolongs the pain for even longer,” Cr Clark said.
“Individual councils are still facing a huge repair and recovery bill, with thousands of road and bridge repairs, as well as other community infrastructure projects through the DRFA program.
“The State Government will, in time, pay exactly the same amount for these repairs to be completed. What it refuses to do is pay now to help communities recover in a timely manner.
“We’re already behind the eight ball on DRFA funding, because the State Government won’t include a betterment fund to allow the upgrade of roads and essential infrastructure to a more disaster-resilient standard – as is the case in New South Wales and Queensland.”
“The Federal Authority – the National Emergency Management Agency of Australia – have stepped up to the plate and have provided a flexible approach to funding support, we now need the State Government to do the same.”
An independent review, commissioned by the Federal Government, is currently underway into disaster funding arrangements.
