Natural disasters cost Australia $2.2 billion in first six months of 2025

West Australian

2 days ago

The Treasury has flagged GDP figures may be lower than expected this quarter due to a huge economic loss from natural disasters so far in 2025.
New analysis by the Treasury has estimated the immediate loss of economic activity from natural disasters so far in 2025 is $2.2 billion.
The huge costs of disasters this year, include the impacts of flooding in the NSW Hunter and mid-North Coast regions, as well as Cyclone Alfred and flooding in western Queensland and Far North Queensland.
Most of the loss will affect the March quarter, the Treasury said, which is to be reflected in National Accounts released on Wednesday.
The natural disasters have also had an impact on retail trade and household spending, data from the March quarter suggests.
Retail trade in Queensland dropped 0.3% in February and 0.4% in March.
Household spending was flat nationally, with a 0.2% drop in Queensland contributing.
Treasurer Jim Chalmers highlighted the dual focus on human and economic costs, with continued disaster assistance.
'Our government's first priority is helping to fund the recovery and rebuild for communities hit hard by all the heavy weather we're seeing more and more frequently,' he said in a release.
'The human impacts matter to us most, but the economic cost is very significant too and we'll see that in Wednesday's National Accounts.
'The Government will be there for people in disaster hit regions, just like they're there for each other.'
Mr Chalmers added they have activated disaster assistance to the Hunter and mid-North Coast regions of NSW.
'Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most,' he said.
Meanwhile, Minister for Emergency Management Kristy McBain stressed the importance of preparedness and long-term recovery, with an extra $200 million to be invested via the Disaster Ready Fund in 2025–26.
'Our Government is committed to preparedness and resilience in order to protect communities when disasters strike,' she said.
'We are committed to funding support to increase resilience, adaptability and preparedness. Our Disaster Ready Fund initiative will provide another $200 million of investment in 2025-26.'
Ms McBain said she has recently been on the ground in NSW, and has seen first hand the effects a disaster can have.
'We have activated multiple disaster payments and we will continue to work with NSW on any other funding requests and I have been meeting with small business and primary producers who have been hit hard,' she said.
'For a lot of these people, it's the cumulative impact of a number of events and we understand that.
'That's why recovery isn't going to be over the next couple of days when cameras and lights are on the area. It's going to be days, weeks and months that we'll walk with these communities.'
Leader of the opposition Sussan Ley is expected to visit flood affected communities on the Mid North Coast on Monday morning, along with local MPs.