Councils insecure facing disaster relief fund cuts

Queensland councils have indicated a possible rise in rates should the federal government choose to axe natural disaster relief funding.

The productivity commission recommended the federal government cut disaster relief funding by 50%. Currently council receives assistance when a natural disaster leaves a damage bill of more than $240, 000 however that threshold would rise to $2million.

Smaller municipalities are said to be most vulnerable.

Commissioner Karen Chester has cited inefficiency in the current relief funding model with many damaged assets being rebuilt and not improved against future disasters. It is unclear how councils are set to future proof council infrasture with reduced federal support.

The federal government will announce how they will respond to the commission report on May 26.