Federal government drops equal-share disaster funding plan
Existing cost-sharing arrangements will remain after councils and states opposed the proposal, which would have reduced Commonwealth contributions.
Treasurer Jim Chalmers confirmed on 9 October 2026 that Canberra would retain its existing disaster recovery funding arrangements, abandoning a proposal for states and territories to cover half the costs.
The plan, announced in June, would have introduced a 50-50 split. Commonwealth contributions had previously reached up to 75 per cent in some areas. Chalmers said consultation with councils and community organisations had informed the decision.
Queensland faced the largest impact from the proposal and received A$1.3 billion through the existing framework in 2024-25. Its disaster recovery minister, Ann Leahy, urged Prime Minister Anthony Albanese to drop the changes in a letter backed by every Queensland mayor and peak industry groups.
The letter warned that communities would be left to cover the funding gap. Queensland Premier David Crisafulli welcomed the reversal but said the state was awaiting further details to ensure the existing arrangements were maintained in full.
Local Government Association of Queensland president Matt Burnett also welcomed the decision. He said the Commonwealth had confirmed councils could still claim Counter Disaster Operations costs and that thresholds for activating funding would be revised.
Emergency Management Minister Kristy McBain said councils' feedback would help shape reforms. She said the changes would make funding easier for councils to access and better reflect communities' differing experiences.
