Disasters a $2.2b blow to economic activity
The cost of lost economic activity because of natural disasters in 2025 has been estimated at $2.2 billion, after Treasury analysed the impacts of Cyclone Alfred, and floods across NSW and Queensland.
Partial data for the March quarter shows natural disasters have particularly impacted retail trade and household spending.
The $2.2 billion figure is based on Treasury's initial assessment at the time of the disasters and there may be rebuilding activity in future quarters.
Most of the overall immediate loss in economic activity is expected to impact the March quarter, which will be seen in the March quarter National Accounts, to be released on Wednesday.
Treasurer Jim Chalmers said the government's first priority was helping fund recovery and rebuilding for communities.
"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," he said.
"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."
Nominal retail trade in Queensland fell 0.3 per cent in February and 0.4 per cent in March.
In volumes terms, the ABS Monthly Household Spending Indicator was flat in the March quarter. The 0.2 per cent fall in Queensland was a contributor to this flat result.
Flooding in NSW in late May, from the Hunter to the mid-north coast, has left 10,000 homes and businesses damaged or destroyed, and the Insurance Council of Australia reported more than 6000 insurance claims.
In early March, Tropical Cyclone Alfred crossed the coast on Moreton Island, and subsequently caused widespread damage and flooding to communities across South-East Queensland and northern NSW.
Prolonged downpours in southwest and central Queensland in late March and early April flooded a vast area spanning about one million square kilometres.
The government's Disaster Assist website lists 27 separate natural disasters from January-May, consisting of flooding, storms, cyclones and bushfires.
Opposition Leader Sussan Ley will be on the Mid North Coast on Monday to visit flood-affected communities with local MPs.
Minister for Emergency Management Kristy McBain said the government was funding measures to increase resilience, adaptability and preparedness, and the Disaster Ready Fund initiative would provide another $200 million 2025-26.
"I have recently been on the ground in NSW seeing first-hand the effects a disaster can have, and it is my priority to work closely with all levels of government to ensure support is provided as quickly as possible," she said.
"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."
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