Regional councils and ratepayers must not be left carrying the cost of rebuilding after floods, fires and storms under proposed changes to national disaster recovery funding.
Deputy Leader of The Nationals and Member for Lowan Emma Kealy has backed concerns raised by Wimmera councils over a proposal that would increase Victoria’s threshold for Commonwealth disaster recovery funding from $240,000 to a staggering $2.7 million.
Horsham Rural City, Hindmarsh, West Wimmera and Yarriambiack councils have warned the proposed change could leave smaller regional disasters falling below the threshold, with no clear answer about who would pay for the recovery.
Ms Kealy said communities across western Victoria already knew what happened when a disaster failed to meet government funding thresholds.
“The October 2024 Casterton hailstorm caused an estimated $50 million in damage and generated more than 1300 insurance claims in a town of just 1600 people,” Ms Kealy said.
“Yet it failed to meet the required damage threshold for public assets, and received no disaster recovery funding support.
“More than a year later, some people were still displaced from their homes and businesses were still recovering.
“We also saw the Little Desert fires cause enormous disruption across Hindmarsh shire and surrounding communities. While some targeted disaster assistance was made available, businesses suffered significant losses and councils were heavily involved in the response and recovery.
“These examples show why arbitrary thresholds simply don’t reflect the real impact of a disaster on a small regional community.”
Ms Kealy said a bushfire, flood, hailstorm or severe storm did not have to cause $2.7 million in eligible damage to devastate a country town.
“A washed-out road still needs to be rebuilt. A damaged bridge still needs to be repaired. Communities still need help to recover,” she said.
“Country councils manage enormous road networks with small populations and limited rate bases. They cannot simply absorb hundreds of thousands or millions of dollars in unexpected disaster recovery costs.
“And the last people who should be left picking up the bill are regional ratepayers.
“The Victorian Government must stand up for regional councils and guarantee country communities will not be left with a funding black hole if these changes proceed.
“The Nationals believe regional Victorians deserve a fresh start and their fair share of government investment.
“That must include being there when communities need help to rebuild after disaster.”

