Prime Minister Scott Morrison has agreed to go halves with the Queensland government in a $741 million package to help Queenslanders rebuild, raise or sell their homes damaged in the recent floods.
Mr Morrison initially rejected the pitch this week and argued the state was crying poor and politicising the disaster on the eve of a federal election.
However he backed down this morning and agreed to the proposal.
"They want to play politics with this, I don't want to play politics with this, I just want to make sure people are getting the support that they need," Mr Morrison told Nine Radio.
"So we'll meet that, the 50:50 cost."
The proposed package includes:
- $275 million for a Resilient Household Rebuild Program
- $350 million for a Voluntary Buy-Back Program
- $6 million for an industry and community education program
- $100 million for a Resilient Household Raising Program
- $10 million for a property level flood information project
Mr Morrison said accusations the federal government was not contributing enough to flood relief were untrue.
"When it comes to direct financial support, two-thirds of the support for the south-east Queensland is coming from the Commonwealth Government," he said.
Mr Morrison wrote to Premier Annastacia Palaszczuk this week saying the federal government had already committed $912 million to the state's flood response, and the proposal fell into the "responsibilities and discretion" of local and state governments.
State government welcomes deal, Coalition vows to make changes
Federal Emergency Management Minister Bridget McKenzie said there were "caveats" to the agreement.
"I'll be asking states very clearly to get serious about reporting their responsibilities for the royal commission into natural disasters, their recommendations that they're responsible for, and making sure we all have clear oversight about who's responsible for what and where we're up to in the rollout of that," she said.
After agreeing to the package this morning, the federal government also released a statement that said "starting now" Queensland and other states must start reporting on the delivery of disaster recovery funding arrangements.
"A re-elected coalition government will strike a new Natural Disaster Partnership Agreement to make it clear what the Commonwealth will fund and what states will fund – and what we cost share.
"This agreement will be clear, open and transparent.
"States and territories will be held responsible for mitigation – publicly reporting on what they are delivering to protect communities against floods, fires and other natural disasters."
Queensland's Acting Premier Cameron Dick said he was "very pleased that he's finally seen the light".
"He'll do the right thing by Queensland, which is what he should have always done, instead of dragging his feet, saying it is someone else's responsibility," Mr Dick said.
"He had three weeks to respond to our letter.
"Now, 36 hours later, he's turned around, but ultimately, it's not about me, it's about the people of Queensland and we'll help those communities."
'Who's going to rebuild every five years or 10 years'
Francisco Klobucar is one south-east Queenslander who was hoping to secure a buy-back in the proposed scheme and was disappointed by the federal government's initial rejection.
His Goodna property has been reduced to its frame, electrical wires hang down from the rafters.
The flood-ravaged home has no ceiling, walls, insulation or hot water and without insurance, Mr Klobucar has little choice but to continue living in the shell of what was once his home.
"I don't even know how much it's going to cost to rebuild, [what happens if I] put all that money in and it happens again?" he said.
"That's money, emotion, stress."
The property backs onto the local sports ground so when the Queensland government unveiled the proposal for a $741 million buyback scheme, he was hopeful.
"The buy back would've been perfect for the soccer club, this could've been car parks, extra land for them and if it did flood again, I wouldn't have the same problem," Mr Klobucar said.
"How would he [Scott Morrison] like it if he had a nice home, just finished from 2011 — fixed — and then everything turns to mud, poo," he said.
"And then you've got to start again, rip up the floors, walls, everything — it just sucks."
'Resilience and mitigation funding is an investment'
Insurance Council of Australia (ICA) chief executive officer Andrew Hall labelled the federal government's initial decision as "short sighted", but welcomed the deal and said he hoped there would be more measures to better protect communities and property from the impacts of extreme weather.
"Resilience and mitigation funding is an investment into future protection, and we support comments by the Prime Minister for other states and territories to do more to improve community resilience in their own jurisdictions," Mr Hall said.
"Unless we can reduce the risk with stronger homes located in the right places, extreme events will continue to cost taxpayers millions of dollars, and the mental health and trauma of communities will continue to be experienced."
Hafiz Ahmad was not insured.
He lives with his wife and four children in their Goodna property in Ipswich that no longer has walls or electricity after 1.6 metres of flood water swept through the property earlier this year.
With Mr Ahmad's wife pregnant with their fifth child, the soon to be family of seven are confined to the home's second storey and still have no access to hot water.
Mr Ahmad was hoping to take part in the state government's buy-back scheme as it was their "one-time solution".
With that hope fallen through, the family are now waiting for funding from government grants, which they are hoping to receive before the birth of their new baby.
Queen praises 'Australians' resolute spirit' in wake of floods
Mr Dick said yesterday the Prime Minister's initial response showed the "highest level of disrespect for Queenslanders" and accused Mr Morrison of making a "political calculation" based on votes in flood-impacted areas.
Yesterday, the Prime Minister defended his initial rejection of the package and criticised the state government.
"The requests they've made, under these programs, go outside of the scope of what the normal arrangements are for flood responses," he said.
"When state governments have spent as much as we have on supporting flood victims, then I think they can be critical."
Queen Elizabeth II posted to social media with a message of condolence for flood victims impacted by the natural disasters.
"I have been saddened to hear of the loss of life and scale of devastation.
"My thoughts continue to be with those who have been impacted as the focus now turns to the long recovery phase ahead."
