Councils take fight against Federal disaster funding cuts interstate

Published on 22 July 2026

Councils take fight against unfair Federal disaster funding cuts across state lines

The Local Government Association of Queensland (LGAQ) has today taken six Queensland mayors from different corners of the state to Melbourne as the sector ramps up the fight to reverse the Federal Government’s unfair disaster funding changes that could leave communities impacted by cyclones, floods and bushfires without the full financial support needed for recovery.

Those unfair changes include reducing the Federal Government’s contribution to disaster recovery from an average of 64 per cent down to just 50 per cent, despite the Federal Government being best resourced to support Australian communities when they are down, taking about 80 per cent of all taxation revenue, compared to about 17 per cent for State Governments and three per cent for councils.

The local government leaders – who travelled a combined 16,000km one-way - were outside the Melbourne hotel where the Federal, State and Territory Ministers met and discussed the proposed disaster recovering funding changes at the National Emergency Management Ministers meeting.

“Queensland councils fear these proposed funding reductions will leave communities worse off, in what is Australia’s most disaster-prone state,” LGAQ chief executive officer Alison Smith said.

“These mayors chose to travel to Melbourne to demonstrate how important it is that the Federal Government drops these proposed reforms.”

The Melbourne mayoral delegation comes just weeks after delegates from the country’s 538 councils used the Australian Local Government Association’s (ALGA) National General Assembly in Canberra in June to call on the Federal Government to abandon its proposed changes to the Disaster Recovery Funding Arrangements (DRFA) that would reduce the Commonwealth’s funding contribution in some states.

In the motion put forward by the Byron Shire Council in New South Wales, local governments voted to maintain existing Commonwealth funding proportions to ensure local councils are not further burdened in recovering from natural disasters. They voted against moves that would shift the Commonwealth/State funding split to 50/50.

Today, the six Queensland mayors – from Queensland’s far north, north west, south west, south east and tropical coast - described the proposed reforms as unfair.

“We all pay our taxes. Communities expect that when they need help, it should be provided. Yet when the Federal Government collects 80 per cent of all national taxation revenue, and councils collect just three per cent, the expectation is that Canberra should make the strongest contribution during natural disasters,” said Etheridge Shire Mayor Barry Hughes.

“Instead the Commonwealth has decided it wants to slash disaster funding, and pocket more than $600 million a year across Queensland if the last disaster season is anything to go by,” said Douglas Shire Mayor Lisa Scomazzon.

“No one wants or deserves a natural disaster. No one asks for their town to be cut off, their roads to be washed away, their main street to be flooded and covered in mud, or their food to run out or go off because the trucks can’t get through. But disaster recovery funding is like an insurance policy – you want it to pay out when a community is on its knees,” said Hinchinbrook Shire Mayor Ramon Jayo.

“These are all the reality of living in Queensland. Locals all do what they can to survive and help each other. All we are asking is that the Commonwealth continues to come good with the current levels of funding to help out,” said Lockyer Valley Regional Council Mayor Tanya Milligan.

“Councils and mayors are standing up for what is right, what is fair. If this deal goes ahead it is nothing less than kicking Queenslanders when they are down,” said Murweh Shire Mayor Shaun ‘Zoro’ Radnedge.

“Our current system works and needs to continue to provide the reassurance communities can rely on,” Whitsunday Regional Council Mayor Ry Collins said.

Queensland Reconstruction Authority (QRA) analysis of the last three years of disasters shows Queensland would receive $1.5 billion less in Commonwealth disaster relief under a proposed new regime, including $638 million less in just the past year alone.

However, the modelling shows Queensland communities would have missed out on at least $2.8 billion in Federal support if the proposed regime had been in place since 2018.

“In the 2025-26 summer, 74 of Queensland’s 77 local government areas were disaster activated,” Ms Smith said.

“Councils have heard the Commonwealth say that no council will be worse off under these reforms, but with the size of the funding gap that this reduction in Federal support would create, these mayors are wondering who will meet this shortfall?” Ms Smith asked.

Ends

Additional quotes

Etheridge Shire Mayor Barry Hughes

“The Commonwealth providing a smaller share of support when they need it most is nothing short of a kick in the guts for any community battling to recover from floods, fire or any other natural disaster.

"The impact is liveability and economic sustainability.

“Who is going to foot the bill for saving people’s lives?”

Douglas Shire Mayor Lisa Scomazzon

“We were smashed by ex-Cyclone Jasper just a couple of years ago. We know the toll it takes. For the Commonwealth to ignore the pain of the people who go through natural disasters to save a few dollars isn’t right and it isn’t fair.

Whitsunday Regional Council Mayor Ry Collins

“We rely on tourism and tourism relies on confidence, If people don’t have that confidence, the funding will not be there to bounce back, we don’t get the visitors and we don’t have the jobs.

“Our current system works and needs to continue to provide the reassurance communities can rely on.”

Lockyer Valley Regional Council Mayor Tanya Milligan

“My community knows disasters can have devastating consequences.

“When you live through the floods of 2011 and 2013 as our communities did, you also learn they don’t let up.

“All levels of government need to be there for every community and when the Federal Government collects the overwhelming bulk of taxes, their job is provide the bulk of the financial support.

“No Australian community should be left worse off because the Federal Government wants to save on disaster funding.”

Hinchinbrook Shire Mayor Ramon Jayo

“We know what it feels like to have flood water in the streets and the huge mop out that follows. We did it last year.

“To face that again without the reassurance the Commonwealth has our back financially is a kick in the guts.

“We know what needs to be done, we simply need Canberra to keep backing in the current system with the level of support they have provided in the past when we needed it most.”

Murweh Shire Mayor Shaun ‘Zoro’ Radnedge

“When the floods hit the southwest last year, we knew we could all swing into action to help our communities and our neighbours because the Federal financial support was going to be there.

“Now as well as floods, we are going to have to deal with fear – fear the support won’t be there from the Commonwealth.

“Providing a lower level of support to Queensland does not help Queenslanders get back on their feet when they need it most.

“Instead of a helping hand, we are being offered a slap in the face.”

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For more information, please contact:

Dan Knowles, Media Advisor
Phone: 0432 681 664
Local Government Association of Queensland