Six months of natural disasters in 2025 have cost the economy $2.2bn, largely in slower retail and household spending, according to new federal Treasury analysis.
Wild weather has repeatedly battered the Australian east coast this year.
The analysis period covers Cyclone Alfred, the first cyclone to hit south-east Queensland in 50 years, and associated flooding.
It also includes the impact of last month’s severe flooding in New South Wales’s Hunter and mid-north coast regions. The disaster left about 10,000 buildings with flood damage, with an estimated 1,000 uninhabitable, and claimed five lives.
Outback and north Queensland also flooded this year.
Treasury expects most of the immediate loss in economic activity to take place in the March quarter.
Partial data for the March quarter has shown that retail trade and household spending have been the most significantly impacted as a result of the disasters.
Nominal retail trade in Queensland fell 0.3% in February and 0.4% in March, according to Treasury analysis. Household spending was flat, with a 0.2% drop in Queensland.
Full March quarter national accounts will be released on Wednesday.
“The human impacts matter to us most, but the economic cost is very significant too, and we’ll see that in Wednesday’s national accounts,” said the treasurer, Jim Chalmers.
“The government will be there for people in disaster-hit regions, just like they’re there for each other.
“We’ve activated disaster assistance to the Hunter and mid-north coast regions of NSW, just as we did earlier in the year in Queensland and northern NSW.”
The treasurer said the economic progress Australians had made lowering inflation, debt and unemployment meant “we’re in a stronger position to provide support when communities need it most”.
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The federal government has activated several rounds of disaster payments.
The minister for emergency management, Kristy McBain, said the government planned to fund projects designed to improve preparedness and resilience in order to protect communities when disasters strike.
“We are committed to funding support to increase resilience, adaptability and preparedness,” she said. “Our disaster ready fund initiative will provide another $200m of investment in 2025-26.”
McBain said she had been on the ground in NSW, where she saw “first-hand the effects a disaster can have”, and had been meeting with small businesses and primary producers that had been “hit hard”.
“It is my priority to work closely with all levels of government to ensure support is provided as quickly as possible,” she said.
McBain said the federal government would “continue to work with NSW on any other funding requests”.
“For a lot of these people, it’s the cumulative impact of a number of events, and we understand that,” she said.
“That’s why recovery isn’t going to be over the next couple of days when cameras and lights are on the area. It’s going to be days, weeks and months that we’ll walk with these communities.”
