As Australia faces growing threats from bushfires, floods, and cyclones, the federal government has opened the third round of its $1 billion Disaster Ready Fund to fortify communities against worsening extreme weather.
This year, $200 million has been allocated, with $138 million directed towards critical infrastructure designed to mitigate disaster risks.
The initiative comes at a time when climate change, rising asset values, and population growth in high-risk areas have heightened the urgency for resilience measures. According to the Insurance Council of Australia (ICA), such investments are key to reducing the physical and financial toll of natural disasters.
“The recent devastating bushfires in LA serve as a reminder of the importance of investing in hard resilience infrastructure and measures that drive down risk and better protect our homes and communities,” ICA CEO Andrew Hall said.
Insurers have long advocated for substantial public investment in projects designed to mitigate disaster risks. Hall said that smarter land-use planning and more durable housing standards are key to reducing the long-term financial strain on high-risk areas. Without these changes, he said insurance premiums will continue to rise, placing additional pressure on households.
The ICA also commended the federal government’s focus on infrastructure in this funding round, describing it as a step toward narrowing the protection gap. However, the organisation stressed the need for sustained investment beyond the current initiative.
"We look forward to continuing to engage with government on targeting resilience investment to the Australians who need it most through the world-leading Hazards Insurance Partnership (HIP)," Hall said, adding that extending the Disaster Ready Fund into a 10-year rolling program would ensure a long-term approach to community safety and disaster mitigation.