Calls for changes to federal disaster funding model

The LGA has used the Independent Review of Commonwealth Disaster Funding to highlight the need for greater efficiencies in the disaster funding process.

Often disaster arrangements are overly complex and place unnecessary administrative burden on councils – at a time when their focus is on immediate health and safety needs of their communities.

The LGA’s submission to the review outlines the experience of South Australian councils, which have been mixed and inconsistent.

Federal funding for risk reduction and resilience through programs like the Disaster ready Fund have been critical for disaster mitigation projects, helping reduce the impact of future disasters on South Australian communities.

However, during emergencies councils need certainty and consistency in accessing disaster funding including clearer definitions and eligibility thresholds, a review of administrative burdens and evidentiary requirements, and simplified claims processes.

The ability for local government to recover costs when responding to disasters is essential, yet greater support and clarity is needed to support councils recover disaster costs and build back better.

The LGA maintains that South Australia’s current disaster funding frameworks do not support councils in disasters due to uncertainties in cost recovery and the unreasonable financial exposure placed upon them.

We would like to see the current damage thresholds brought into line with other state jurisdictions. Independent research has shown that South Australian councils are the least financially supported councils in Australia when it comes to recovering costs related to a natural disaster.

Smaller councils across most other states can recover between 60 to 75 per cent of total costs incurred in relation to natural disasters under their relevant state frameworks. In South Australia, it’s about 38%.

For larger councils, South Australian councils are very limited in their ability to recover costs due to high thresholds.

The Independent Review explores the most effective ways for the Federal Government to support communities through the funding it provides to state and territory governments, local governments, businesses and community organisations in support of natural disaster management.

You can now read the LGA submission in full.