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Disaster recovery funding advocacy a win for councils

12 October 2026
LGA has welcomed the Federal Government’s decision to scrap proposed changes to the current disaster recovery funding arrangements that would have seen the Australian Government reduce its contribution to recovery costs from 75 per cent to 50 per cent.

LGA made a submission to the Federal Government’s review of Disaster Recovery Funding Reform in August calling on the Commonwealth to ensure that they do not shift additional costs, risks or administrative burden on councils.

This followed engagement with the Minister McBain’s Office, the National Emergency Management Agency, and SA Department for Premier and Cabinet, amongst others, on the impacts.

Friday’s announcement is the first step in the review, with the government confirming it will not reduce its obligation to support communities recover from disasters by lowering its contribution to 50 per cent.

ALGA strongly expressed their view to the Federal Government with a comprehensive submission, supported by all state and territory associations.

ALGA's submission highlighted the need for any new framework to ensure councils and communities are not left worse off. It also called for timely reimbursement, flexible recovery packages, reduced red tape and greater investment in resilience and preparedness.

The next significant opportunity for council input is expected to come when South Australia's Local Government Disaster Recovery Assistance Arrangements are reviewed next year, following the Federal Government reforms.

LGA also called for a review of the funding activation threshold and we look forward to working constructively with the Federal Government on these concerns and the remainder of the reforms as they progress.

To view LGA’s submission visit: LGA supports national call for fairer disaster recovery funding | LGA South Australia