The Greater Whitsunday Council of Mayors (GWCoM), representing Mackay Regional Council, Isaac Regional Council and Whitsunday Regional Council, has called on the Australian Government to reconsider a proposed overhaul of disaster recovery funding that risks shifting costs onto regional Queensland councils and ratepayers.
On 5 June 2026, federal Emergency Management Minister Kristy McBain MP announced a proposed Disaster Recovery Funding Framework (DRFF) to replace the Disaster Recovery Funding Arrangements (DRFA). At a Local Government Association of Queensland (LGAQ) webinar on 10 June 2026, Minister McBain confirmed the Commonwealth’s 50/50 cost share for Category A, C and D measures is not changing. A new event-based funding threshold, the Small Disaster Criterion, is proposed to replace the current annual threshold.
Preliminary modelling by the Queensland Reconstruction Authority (QRA), presented to Minister Leahy and Minister McBain on 10 June 2026, found the proposed funding threshold change would have reduced Commonwealth reimbursement by approximately $1.5 billion against $8.7 billion in total DRFA expenditure since 2023, had it applied retrospectively. GWCoM has sought clarification on how this aligns with the confirmed 50/50 cost share.
The QRA analysis also found a proposed 15% cap on betterment funding, the additional cost of rebuilding infrastructure to a higher, more disaster-resilient standard, would fall short of the level needed in more than 90% of betterment projects in this region since 2013. Minister McBain has pointed to the Disaster Ready Fund (DRF) as a possible additional funding source above the cap.
“This is the single biggest cost shift onto state and local government that I have seen in my time in local government, and it is an abrogation of the federal government’s duties to the communities it taxes. If the federal government reduces this funding the way it intends to, public infrastructure will most likely not be rebuilt, because state and local governments cannot afford to fill the gap. The national government collects around 80 per cent of all tax revenue in this country, while local government collects around 3 per cent. Yet it seems that local government will be left holding the bill when public infrastructure needs to be rebuilt after a disaster.” Mayor Greg Williamson, Mackay Regional Council, said.
“Regional communities like Isaac contribute significantly to the state and national economy. The reality is that local councils do not have the financial capacity to absorb any reduction in disaster funding from the state or federal government. The federal government raises approximately 80% of the nation’s taxation revenue, the state government around 17% and local governments 3%. A proposed split of 50/50 is illogical, unfair and ironically would have a flow on affect to their industry related revenue.” Mayor Kelly Vea Vea, Isaac Regional Council, said.
“This is a critically important issue for regional communities like the Whitsundays. We know all too well disaster recovery can take years, not months, and any reduction in funding risks leaving communities without the means to fully rebuild. Recovery funding is not simply a cost — it is an investment in the capacity and the productivity of regions that underpin the Australian economy. We need to ensure regional communities are not left carrying a greater share of the burden when disasters occur.” Mayor Ry Collins, Whitsunday Regional Council, said.
GWCoM has joined the Local Government Association of Queensland (LGAQ) in calling on the Commonwealth to retain a fair cost share for disaster recovery, and is encouraging residents and councils across the region to sign the LGAQ’s ‘Stop Canberra’s Disaster Recovery Cuts’ petition.
GWCoM has written to local councillors across the region seeking their support, and will make a submission to the Commonwealth’s DRFF consultation, due by the end of July 2026, seeking clarity on the proposed funding threshold.
Media contact
Greater Whitsunday Council of Mayors – info@gwcom.au
