LGA raises concern for proposed changes to Disaster Recovery Funding Arrangements

The proposed framework is intended to simplify disaster recovery funding arrangements to ensure money flows to impacted communities faster. However, LGA is concerned that this review could also mean a reduction in funding for disaster-impacted councils in SA.

The National Emergency Management Agency (NEMA) have outlined that the proposed framework would:

• introduce standardised packages of assistance so impacted communities get access to timely, suitable supports
• embed an equal partnership between the Australian, state and territory governments through a 50/50 funding model
• implement a simpler threshold for accessing disaster funding, delivering support to communities sooner
• introduce a Resilient Infrastructure Scheme to support communities to build back better after disaster, with funding of up to 15 per cent cost shared with jurisdictions.

The reforms are being informed by the Independent Review of Commonwealth Disaster Funding led by Andrew Colvin AO APM.

At this stage, the detail of how the proposed framework would operate remains unclear and discussions with NEMA are ongoing.

LGA is engaging with both the federal government, via ALGA, and state government agencies to understand the implications.

While we are currently working to better understand the proposed changes, our key concern is around any change to increase to threshold levels, noting that many South Australian councils already face significant challenges meeting the current requirements.

LGA will strongly advocate against any change that would increase the threshold and limit disaster-impacted councils from claiming.

Based on independent benchmarking, commissioned by LGA, the current local government disaster recovery arrangements see South Australian councils the least supported and most financially exposed local governments in Australia, despite facing the same disaster risks and responsibilities.

As a result, South Australian councils bear a significantly greater share of disaster costs than their counterparts interstate.

As natural disasters become more frequent and severe, it is critical that any new federal funding arrangements:

• deliver support quickly
• do not reduce the overall level of disaster recovery funding available to South Australia
• recognise the significant role councils play in disaster response and recovery
• support regional and rural communities that often face the greatest recovery challenges
• reduce administrative and cumbersome processes that delay access to funding
• provide certainty for councils planning recovery and resilience works.

At the same time, the South Australian Local Government Disaster Recovery Assistance Arrangements should be reviewed.

Councils are already managing growing infrastructure and service demands, alongside increasing costs associated with natural disasters and extreme weather events.

Any reforms must strengthen, not weaken, the ability of councils, and their communities, to recover and rebuild.

LGA will continue to engage with the Federal Government as part of the consultation process and will keep members informed.

Read Minister McBain’s Media Release.

Read more about the proposed changes to the Disaster Recovery Funding Framework.