Qld floods: Staggering cost of flood damage and clean-up revealed

The financial cost of Queensland’s fatal flood catastrophe has been revealed as the clean-up continues. But, while the figure is well into the billions of dollars, it’s still set to soar even higher as the impact to the state’s economic activity becomes clear.

The devastating floods that swept through South East Queensland will cost taxpayers up to $2.5bn in repairs, with the state’s economy also taking a massive $1bn hit.

The state government unveiled its first estimates of the damage bill from last week’s disaster, with private insurance claims already reaching about $936m.

Treasurer Cameron Dick said the first estimates were preliminary – and likely to rise as more damage assessments were conducted.

Finishing the clean up after the flood, on Logan Ave Oxley. Photo Steve Pohlner

“Right now, our immediate focus is on helping those families and businesses hit by this disaster to get back on their feet,” Mr Dick said.

“But at the same time, we are beginning the planning work that will create stronger, safer and more resilient communities.”

The government anticipates recovery programs and support measures, such as rebuilding impacted infrastructure, will cost the state between $2bn and $2.5bn.

The state will ask the Commonwealth to share the costs.

The reduction in economic activity from the disaster is expected to be about $1bn, or about 0.25 percentage points of gross state product.

This is far less than the 2.25 percentage point loss experienced during the weather events of 2010/11.

Mr Dick said the disaster was, at this stage, not expected to impact the government’s plan to return to surplus by 2024-25.

“But of course we will be in the hands of nature, we will be in the hands of weather,” he said.

Mr Dick said he didn’t expect the impact to the state government’s budget to extend beyond this financial year and next financial year.

He committed to making sure the government did not increase “any financial burden” on Queenslanders.