Australia news live: Dominic Perrottet faces leadership crisis; Albanese to visit PNG war graves

Jim Chalmers to inspect flooding recovery efforts in northern NSW

Today the treasurer, Jim Chalmers, and the emergency management minister, Murray Watt, will travel to northern New South Wales to observe rebuilding and recovery efforts from the 2022 floods.

New National Emergency Agency analysis shows that 68% of Australians live in a local government area that was subject to a natural disaster declaration in 2022.

Treasury’s preliminary estimates are that the loss of economic activity of flooding across Australia in 2022 is about $5bn (equivalent to 0.25% of real GDP in 2021-22) from reduced activity in the mining, agriculture, accommodation and food services, retail trade and construction industries. This does not include the significant additional costs associated with losses of assets and other impacts, such as damage to housing or transport infrastructure or the costs to the budget.

Flooding was also a driver of inflation in 2022, particularly in higher prices for fruit, vegetables, and other agricultural products and from disrupted supply chains. Fruit and vegetable prices increased 16.2% over the year to the September quarter, compared with an average annual rate of 2.5% over the 10 years preceding Covid-19.

Chalmers said:

These natural disasters are first and foremost a human tragedy, and that will always be our main focus, but there are substantial costs to the economy and budget too.

We know these types of disasters put up prices, slow down growth in the near term, and cost the budget billions of dollars.

Natural disaster funding was a key focus in the budget in October and will be a key focus in May as well. This isn’t optional spending – it has to be done.

Watt said:

Since taking office less than eight months ago, the Albanese government shifted our national approach to disaster management, after a decade of inaction.

Our focus has been to ensure Australia is better prepared for natural disasters and that we respond faster when they hit.

While delivering fast disaster recovery support is essential, taking proactive steps to reduce disaster risk and get people out of harm’s way is equally important.