Council concerned by dud disaster funding deal

Published on 01 July 2026

Changes proposed by the Australian Government that threaten to reduce the amount of disaster funding provided to the Queensland Government and local councils following natural disasters have prompted serious concern from Council.

On 5 June 2026, Emergency Management Minister, the Hon. Kristy McBain MP, announced widespread changes to the current Disaster Recovery Funding Arrangements (DRFA), proposing a shift to a standard 50/50 funding model between the Commonwealth and States and Territories.

Ipswich Mayor Teresa Harding said these changes would see funding provided to support Queensland’s recovery from disasters drop from an average Commonwealth contribution of approximately 64 per cent, and up to 75 per cent in some cases, to just 50 per cent.

“Queensland is the most disaster‑impacted state in the country, and Ipswich is one of its fastest growing and most exposed communities,” Mayor Harding said.

“In the last six years alone, we have experienced the Springfield Halloween Hailstorm that caused about $1.1 billion in damage, the 2022 floods that caused south-east Queensland about $7.7 billion in damage, and the impacts of Tropical Cyclone Alfred.

“We cannot afford a funding model that weakens our ability to recover and leaves our community worse off when it matters most.

“This represents a straight cost shift from the Federal Government onto the State and potentially councils, which ultimately means that Queenslanders will be left paying more when disasters hit.

“For Ipswich, that likely means slower rebuilds to parks and walkways, delayed repairs for roads and waterways, longer disruptions for our community and more financial pressure on our ratepayers.

“That is why it is essential that we make our concerns clear to the Prime Minister, the Emergency Management Minister, our local Federal representatives, the Queensland Government and NEMA.

“Because the only thing worse than the natural disasters we face would be a government funding model that steps back from our community when we need them the most. Ipswich deserves better than that.”

Councillors unanimously supported a Notice of Motion moved by Mayor Harding and Division 2 Councillor Paul Tully, Council’s LGAQ delegates, at Thursday’s Ordinary Council meeting.

Cr Tully said Queensland currently receives an average Commonwealth contribution of about 64 per cent under the DRFA, with the Commonwealth contribution reaching up to 75 per cent for some disaster categories.

Since 2023, Queensland has incurred $8.7 billion in DRFA costs.

“These changes would have reduced the Commonwealth’s contribution by $1.5 billion,” Cr Tully said.

“The threshold for small disasters to trigger Federal support currently sits at $240,000 in damages, however these changes propose that this threshold will be increased $2.7 million.

“In Ipswich, that could lead to significant impacts on council’s ability to recover and restore community infrastructure quickly after a natural disaster such as another flood.

“The Federal Government believes the new framework will simplify arrangements, reduce bureaucracy and speed up recovery assistance. However, the LGAQ argues these changes will directly undermine Queensland communities’ ability to recover quickly after disasters.”

The motion will see Mayor Harding write to Prime Minister Anthony Albanese and Minister McBain, as well as Queensland Premier David Crisafulli and Minister for Local Government and Water and Minister for Fire, Disaster Recovery and Volunteers Ann Leahy, objecting to the proposed funding changes which would likely leave Ipswich financially worse off in the event of a future disaster.