Natural disasters threatening hopes of slim budget surplus: McBain
Department of Finance figures released last week showed the Albanese government had shrunk the forecast underlying deficit for 2024-25 to $5.5bn as of May, down from $27.9bn.
But with natural disasters happening more often and states needing greater federal support in their responses, factoring in the cost poses a serious challenge for Jim Chalmers as he vies to keep his budget streak.
Emergency Management Minister Kristy McBain said on Sunday extreme weather events had already cost Commonwealth coffers some $2bn in the first six months of 2025.
'The first six months of the year we've seen a number of events in our communities,' she told Sky News, pointing to ex-tropical cyclone Alfred.
Alfred caused havoc by pounding coastal communities in Queensland and New South Wales with violent waves and winds.
It also affected when the Prime Minister called the election.
'We've had those southwest Queensland floods, flooding in North Queensland,' Ms McBain said.
'Just last month, we saw the mid-North Coast and Hunter floods and an event, obviously over the past week on the South Coast of NSW in particular, also at a time where we've got drought in Victoria and South Australia.'
She said while the states and territories led the disaster responses, the federal government has 'provided over $770m in direct Commonwealth assistance to people in disaster hit areas'.
Ms McBain said federal funds also went into economic recovery, such as supporting primary producers and small businesses.
'So for the first six months of this year, we're close to $2bn that we've spent, and we'll continue to work with the states and territories … to make sure that we are dealing with some of those infrastructure impacts,' she said.
Asked directly if the costs would ultimately dash the Treasurer's chances of landing another budget surplus, Ms McBain said natural disasters were hard to factor in to planning.
'In a budget, you are looking at a range of things that you can measure and predict,' she said.
'And I think what we have come to see is that natural disasters sometimes are unpredictable, and the impact they have on communities can be long and wide ranging.
'And what we've said from day one since the Albanese government was elected, is that we will walk with communities through the long tail of recovery, because recovery isn't … a few days while cameras and lights are in the area.
'It's … the weeks, the months and potentially years afterwards.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
41 minutes ago
- News.com.au
‘Such a pinch yourself moment': Close friends launch brand in major retailer
Two friends have been left stunned after launching their body wash brand and watching it off the shelves almost immediately. Georgie Gilbert, 38, and Camille Peressini, 39, invested over $100,000 to launch their natural body wash brand, SOMA, which is stocked in Woolworths nationwide. The idea was pretty simple; the pair wanted to create a body wash that feels like 'a luxury fragrance experience' but is designed for everyday use, with a reasonable price tag. The product is currently available in three fragrances – Amber & Jasmine, Almond & Vanille, and Vetiver & Cedar. The plan was to launch the brand in early July – but a few products were made available on shelves earlier than expected. Things spiralled from there after some online creators discovered the personal hygiene products early and posted about them on social media. The business owners then decided to pivot, accelerating the launch to meet the unexpected demand. Even though the close mates believed in their idea, they were elated and overwhelmed to see the initial reaction. Ms Peressini said that witnessing the products sell out at some supermarkets has felt incredibly 'surreal' and nothing short of a dream come true. 'Such a pinch yourself moment,' she told 'Myself and Georgie have been working around the clock just to get the product on shelves.' Ms Peressini stressed that the success has been made that much sweeter because of how they've achieved it. 'The turnaround was wild, and we've done it all with no outside funding and no team,' she said. 'SOMA is entirely self-funded, built from the savings we accumulated during our previous careers. 'No debt, no outside investors – just the two of us, supported by brilliant retail and manufacturing partners.' The instant success has been a huge surprise, but the friends and business owners always knew there was an audience for their product. The pair explained that they both strongly believed there has been a 'real gap' between overly functional supermarket body washes and ultra-luxury products in department stores. They wanted to create a product aimed at people their own age but were also determined to make it affordable at $18 a bottle. 'It was born from a desire to connect with fellow Millennials through a brand that had great formulas, elevated minimal design and an affordable price,' Ms Gilbert explained. It has been an absolute joy to see the brand doing so well in its first month of launch. Ms Peressini said it's still early days, so they're still unsure of the exact amount made from their sales, but they're thrilled with the initial projections. While the pals weren't keen to share exact figures, they did reveal that Woolworths has already placed multiple reorders. 'We honestly can't believe it,' they said.
ABC News
an hour ago
- ABC News
What are the ethics of selling the mushroom murder story?
Marketing experts say there's a lot of money to be made from Erin Patterson's story, but caution it should be done with respect to the victims and their families.
ABC News
an hour ago
- ABC News
Apple and pear growers diversify as Australia's fruit consumption declines
After moving to Australia 19 years ago, Amarinder Bajwa built a career in Melbourne in transport. But four years ago, he left it all behind to pursue his dream of being a farmer in Victoria's Goulburn Valley. "I had no idea about Shepparton, but I came to visit a friend who had just bought a farm here," Mr Bajwa said. "I really liked the weather and the way everything looked really green. "It resembles my home country." Mr Bajwa, who grew up in Punjab in northern India, purchased a fruit orchard in Shepparton East with his brother, but it was not long before it got tough. He lost nearly 70 per cent of his crop to a hailstorm, the orchard was flooded in 2022 and now the state is experiencing drought conditions. Despite all that, Mr Bajwa does not regret making the move. "I feel connected — farming brings communities together, whereas in metros you don't know your next-door neighbours. "The support we've had from the community has been beyond my expectations." Apple and Pear Australia Limited (APAL), which represents growers, said the industry was at a "crossroads" and most producers had not made a profit in the past four years. APAL head of industry, government relations and advocacy Jeremy Griffith said he expected more orchards to be consolidated over the next five years. "Input costs have ramped up dramatically, and supermarkets are not covering those costs," Mr Griffith said. Mr Griffith said APAL's strategy for the next five years would focus on increasing consumer demand for fresh produce. New export markets are opening up in China, but Mr Griffith said the industry really needed Australians to eat more fruit. "Apple consumption has flatlined and we have certainly seen a decline in pear consumption," he said. "We did see, in the last few years, 15 per cent of pear orchards removed." The challenges continue to stack up, but Mr Griffiths said farm succession was one of the biggest concerns for orchardists. "Their kids don't want to take over because they can't really see a future in it," he said. "Working this hard and not being able to make a profit, it's a pretty depressing place for the industry to be in. "It's a tough, tough business … and I'm yet to meet a grower who doesn't work seven days a week." It is Mr Bawja's unsinkable optimism that keeps him in the orchard every day. Mr Bawja is diversifying his crops so he does not have to rely on the income of an annual harvest, including growing broccolini year-round. "This is the third year and we're really happy with the way things are coming up," he said. He also plans to plant more apples and apricots. "We are in the process of pulling old varieties out and replacing them with new varieties," Mr Bajwa said. "They are better looking, better eating quality and better yields
