Albanese backflips on controversial disaster funding following backlash

The Albanese government has abandoned its controversial plan to slash federal disaster recovery funding following fierce backlash from state governments and councils.

Federal Labor had proposed to cut its portion of financial support down to a 50-50 cost-sharing model with states and territories, prompting heated criticism from local leaders across the country.

Federal Treasurer Jim Chalmers announced the policy backflip on Friday, revealing the current 75-25 funding split would remain.

“This is all about ensuring the Commonwealth government is providing certainty and providing funding when disaster hits ,” he told reporters south of Brisbane.

“We do take seriously all of the consultation that has happened between the government, with local councils, and with other organisations to make sure we get this right.

“Our goal here is to make sure disaster funding can be faster, it can be adequate, and we get the funding where it’s needed as quickly as possible.”

Queensland Premier David Crisafulli was particularly vocal in opposing the plan, whose state is vulnerable to destructive and costly floods and cyclones .

The LNP state leader described the proposed funding change just hours before the backflip as an “unmitigated disaster” that would lead to a crippling cost burden on councils.

“The larger councils would pass on rate rises to their communities, that would destroy people in their darkest hour,” he told reporters in Rockhampton before the policy shift was unveiled.

“Governments will get it wrong sometimes, and they should reflect and think and pivot.”

After the funding change was ditched, Crisafulli released a statement thanking Prime Minister Anthony Albanese “for listening to our concerns and arriving at a commonsense decision”.

“We now wait to see further details, and ensure this is delivered and funding arrangements are maintained in full, so Queenslanders can have certainty and confidence in their hour of need during disaster season,” the premier said.

“We look forward to strengthening our preparedness and response ahead of disaster season, in the knowledge that there will be no changes to a formula that has worked for decades.”

Logan Mayor Jon Raven , whose local government south of Brisbane regularly responds to floods and damaging storms, said the Local Government Association of Queensland peak body had lobbied both Chalmers and Emergency Management Minister Kristy McBain to abandon proposed the funding change.