Senate debates

Thursday, 21 March 2024

Questions without Notice

Insurance Industry

2:47 pm

Photo of Tony SheldonTony Sheldon (NSW, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Emergency Management, Minister Watt. Given our country is facing more frequent and intense natural disasters, and given, as a result, more Australians are now living in areas at high risk of floods, bushfires and cyclones, this increased risk has made insuring homes more expensive for many Australians. Minister, what is the Albanese Labor government doing to deliver tangible national action to reduce climate and disaster risks and put downward pressure on the cost of living?

Photo of Perin DaveyPerin Davey (NSW, National Party, Shadow Minister for Water) Share this | | Hansard source

That's a good question.

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

It is a good question, Senator Davey, and I've got a very good answer as well. I thank Senator Sheldon for his ongoing work as the Special Envoy for Disaster Recovery. I know that only recently he was in Far North Queensland, where both he and Senator Green have been doing terrific work to assist Far North Queenslanders recovering from the cyclones and floods that we've seen in the last couple of months.

Since our election in 2022, the Albanese government has worked hard to ensure that Australia is much better prepared for natural disasters. Increased disaster risk is the single biggest contributor to the higher insurance costs that many households are experiencing. Rising insurance premiums, which the former government allowed to spiral out of control, are another cost-of-living pressure on Australians. Without insurance, people face longer recovery times and need to rely on their own savings or funding from governments or charities to support recovery.

Today, I was proud to announce that, in a world first, two of Australia biggest insurers are now providing discounts to customers who complete a bushfire resilience self-assessment through the government funded, free Bushfire Resilience Rating app. Thanks to a $3 million investment from the Albanese government, Australians living in bushfire-prone areas have the science and power in their hands to improve their home's resilience. The discounts announced today by Suncorp and NRMA for high resilience ratings can be up to $500 off your premium for people living in the highest risk areas. This is real cost-of-living relief for Australians doing it tough. The higher the bushfire risks at a location, the higher the discount provided to customers who improve their home's resilience.

To date, 19,000 households have accessed the app since it was launched in October last year. Many of the recommended actions through the app cost very little or nothing at all. So this is a practical step with an investment by the Albanese government that is helping take some of the pressure off Australians with their insurance premiums.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Sheldon, first supplementary?

2:49 pm

Photo of Tony SheldonTony Sheldon (NSW, Australian Labor Party) Share this | | Hansard source

Noting the Albanese government's investments are making Australia safer and more resilient to the impacts of natural disasters, what other measures have been implemented in the resilience space, and how are these investments helping with the cost of living?

2:50 pm

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

Thanks, Senator Sheldon. We know that investment in resilience and mitigation not only makes Australians safer when disaster strike; it also reduces the cost of recovery for governments and households. With a massive $1 billion pipeline of resilience and mitigation investment over the next five years through the Albanese government's flagship, Disaster Ready Fund, we expect to see these benefits continue to flow through to Australians in the coming years.

On the other hand, the former government had to be dragged kicking and screaming to even acknowledge climate change—and we know there are a few of them who still aren't quite there yet. Maybe by 2050 they will acknowledge climate change is happening, or even invest in disaster risk reduction. They failed to act as natural hazards grew more frequent and intense, and their $4 billion Emergency Response Fund didn't spend a single dollar on disaster mitigation. Their inaction is what has created the environment for rising risk in insurance premiums. The Albanese government takes these issues seriously. We're making Australia better prepared. (Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Sheldon, second supplementary?

2:51 pm

Photo of Tony SheldonTony Sheldon (NSW, Australian Labor Party) Share this | | Hansard source

Right now communities in the Northern Territory are experiencing severe weather, following Tropical Cyclone Megan. Minister, can you provide an update on the current severe weather situation across Australia?

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

We do continue to see severe weather occur in many parts of Australia with the high-risk weather season not yet over. Even today, we see bushfires in some parts of Western Australia and floods in some parts of Queensland. But, of course, most focus is on the situation in the Northern Territory. In Borroloola, the McArthur River, already at the record-breaking height of 17.6 metres, is likely to peak between 3 pm and 6 pm today.

In response to requests from the Northern Territory government, the Commonwealth has worked quickly to activate the ADF, and we have now improved a number of requests for additional assistance over the past four days. Around 200 vulnerable community members have been evacuated from Borroloola to Darwin in the past 24 hours, with planning underway for possible evacuations at Timber Creek, Lajamanu, Kalkaringi and Pigeon Hole. The level of flooding in Borroloola and across the Northern Territory is extremely concerning. I encourage all community members to heed the advice of officials and take decisive action early. We will continue to work with the Northern Territory government to keep people safe. (Time expired)