The federal government has abandoned its proposed equal split of disaster recovery costs with states and territories, a decision welcomed by Queensland's government and councils on Friday (9 October). The Commonwealth will retain the current cost-sharing arrangements, which provide up to 75 per cent of recovery funding when the relevant criteria are met.
A joint announcement by Treasurer Jim Chalmers and Emergency Management Minister Kristy McBain also retains councils' ability to claim costs under Counter Disaster Operations. Funding activation thresholds will be revised, with the government saying the changes are intended to give communities more certainty and easier access to support.
The proposed 50-50 funding split was announced in June. ABC News reported that Queensland received $1.3 billion under the existing framework in 2024-25, the highest proportion in the country, making the proposed change particularly significant for the state.
Queensland disaster recovery minister Ann Leahy had written to Prime Minister Anthony Albanese calling for the proposal to be dropped. According to the ABC, the letter was signed by all Queensland mayors and peak industry groups and warned that communities would be left to fund the shortfall if Canberra reduced its contribution.
The campaign had been running for months. In a statement published on 22 July, the Local Government Association of Queensland said it had taken six mayors to Melbourne to press the case against the changes. It described the proposal as reducing the Commonwealth's contribution from a historical average of 64 per cent to 50 per cent.
That average is distinct from the conditional maximum in the retained funding arrangements. The Commonwealth's announcement specifies support of up to 75 per cent when criteria are met, rather than promising that share for every recovery claim. Chalmers attributed the decision to consultation and advocacy from councils and Queensland federal Labor colleagues.
Queensland Premier David Crisafulli welcomed the reversal but said the state was waiting for further details to ensure the arrangements were maintained in full, the ABC reported. LGAQ president Matt Burnett also welcomed the decision, including confirmation that councils could continue claiming operational costs and that activation thresholds would be revised.
The cost-sharing reversal does not end the broader framework reforms. The Commonwealth says the framework responds to recommendations from the Independent Review of Commonwealth Disaster Funding and aims to make support more timely and accessible. McBain said the changes should reflect communities' differing experiences and make it easier for councils to obtain funding when they need it.