Flood Defence Fund

Floods pose a critical threat to Australia. Around 1.36 million properties are at risk of flooding, and it is estimated that half of these properties fall short of the flood resilience measures of modern planning and building standards.  

Around 298,000 of these properties – approximately 225,000 homes and 73,000 businesses – face at least a two or five per cent chance of flooding each year – this is classified as severe to extreme flood risk. 

Flood risk is compounding vulnerability 

Flood risk and financial vulnerability and hardship often go hand in hand. Around 70% of households exposed to the highest flood risk are in areas where the median income is below the national median ($92,000), and around 35% of these households are in areas where the median income is below the poverty line ($58,000).  

As a result, many of the people who live in these high-risk areas struggle to afford insurance, creating a cycle where those least able to recover from disaster are at the highest risk. 

A big problem requires a big solution

To reduce risk and protect communities, the ICA is calling for a Flood Defence Fund, at a cost of $30.15 billion over ten years, shared by the Federal Government and the state governments of Queensland, New South Wales and Victoria, the states with the vast majority of highly exposed flood properties.  

$30.15 billion is a big number, but this big challenge demands a big solution. Failing to act will cost all Australians – with worsening extreme weather estimated to cost $35.2 billion a year by 2050.  

The Flood Defence Fund aims to:  

• protect Australian communities on the frontline of floods 
• help to moderate insurance premiums in those areas  
• reduce future recovery costs in the wake of disasters. 

Targeted solutions

The greatest flood risk is concentrated along Australia’s east coast, with 24 priority catchments identified due to their extreme flood risk to nearby communities and their suitability for targeted risk reduction measures.