$30 Billion Flood Defence Fund Proposed in Election Agenda

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

According to ICA’s proposal, the flood defence fund would be strategically allocated over a ten-year period, with financial responsibilities shared between federal, New South Wales, Queensland, and Victorian governments, as these areas have been identified with the highest flood exposure. The allocation plan includes $15 billion for new flood defence infrastructure, $5 billion to reinforce vulnerable properties, $10 billion for property buyback schemes, and $150 million invested in enhancing current flood mitigation infrastructure.

In addition to flood management, the ICA's platform outlines reforms across various areas, such as optimizing land use planning, introducing rigorous regulatory measures, enhancing building resilience, ensuring consistent investment in the Disaster Ready Fund, and addressing ongoing challenges within the motor repair sector.

As ICA CEO Andrew Hall articulates in the report’s introduction, the previous year saw Australia’s general insurance sector underpinning household and business stability with 41 million policies issued and claims exceeding $32 billion. However, he warns that escalating risks and costs are undermining the affordability and effectiveness of insurance, further compounded by the current cost-of-living crisis, which intensifies pressures on both families and businesses. Hall emphasizes that addressing these issues is imperative and requires decisive action.

The proposed fund is crucial as it directly addresses the financial burdens associated with flood damage, which can devastate community infrastructure, homes, and businesses. By investing in preventive and mitigative measures, the fund aims to reduce the frequency and severity of flood impacts, potentially lowering insurance premiums in high-risk areas and enhancing the overall resilience of Australian cities and towns.

If adopted, the fund could lead to substantial infrastructure projects in flood-prone regions, enhancing community protection and possibly setting a precedent for future climate adaptation policies. The insurance sector, along with state and federal governments, will need to collaborate closely to ensure effective implementation of proposed measures. Additionally, the emphasis on regulatory improvements and infrastructure resilience signals a broader push towards sustainable urban development, aligning economic security with environmental stewardship.

Published:Tuesday, 4th Mar 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Claims Handling Scrutiny Offers Income Protection Lessons

05 Aug 2026: Paige Estritori

Recent industry attention on insurance claims handling has put a practical issue back in front of Australian households: a policy is only as valuable as the support it provides when a claim is made. For income protection insurance, that moment often arrives during illness, injury, stress and reduced cash flow, so clear communication and timely assessment matter enormously. - read more

New APRA Data Reinforces the Need to Review Income Protection Cover

29 Jul 2026: Paige Estritori

APRA’s latest life insurance performance data has put income protection back under the spotlight, with disability income products continuing to be one of the more closely watched areas of the sector. While the broader life insurance industry has been showing signs of improved stability, the update reinforces that policies designed to replace income after illness or injury remain sensitive to claims experience, pricing, and changing work and health trends. - read more

AFCA Decision Highlights Limits on Recovering Income Protection Payments

22 Jul 2026: Paige Estritori

A new Australian Financial Complaints Authority decision has offered an important reminder for anyone relying on income protection insurance through work or super: once benefits have been paid, an insurer generally needs a strong and clearly evidenced basis before asking for that money back. - read more

Why Commission Earners Should Check Their Income Protection Wording

15 Jul 2026: Paige Estritori

A recent Australian Financial Complaints Authority decision has put an important issue in focus for sales staff, recruiters, account managers and other workers whose income depends partly on commission. The dispute involved a policyholder covered under an employer’s group income protection arrangement with MetLife. After a work-related mental health injury, he claimed on the policy, but his commission earnings were left out when his pre-disability income was calculated. - read more

What the Life Code Review Could Mean for Mental Health Claims

08 Jul 2026: Paige Estritori

The latest review of the Life Insurance Code of Practice has put mental health cover at the centre of the national conversation about life insurance, disability insurance and income protection. Independent reviewer Peter Kell has completed his final report, outlining 85 recommendations aimed at improving customer protections, claims handling, communication, vulnerability support and the enforceability of the Code. - read more

Cancer Claim Decision Shows Why Policy Wording Matters

01 Jul 2026: Paige Estritori

A new Australian Financial Complaints Authority decision has underlined a point that is easy to overlook when buying personal insurance: a serious diagnosis does not always mean a policy benefit will be payable. The ruling, reported on 29 June 2026, involved a claimant who sought benefits after being diagnosed with high-grade urothelial carcinoma of the bladder. Although the illness was serious and required treatment, AFCA found the insurer was entitled to rely on the specific wording of the policy. - read more

Click for more Insurance News