“Cascading” natural disasters to set taxpayers back by billions

Farmers will be on the frontline of climate change as droughts worsen and become more frequent, the treasurer is warning.

Crop yields could decrease 4% by 2063 and cost the nation about $1.8 billion in GDP, Jim Chalmers says.

“All this means that the challenge of climate is global in scope but regional in impact,” Dr Chalmers will tell the national drought forum in Rockhampton on Tuesday.

“We know that our farmers are on the frontline but you are resilient and innovative, and the government is ready to support you.”

The pressures of a changing climate and “constant, cascading and cumulative” natural disasters will set the taxpayer back billions over coming decades, the treasurer says.

Disaster recovery spending has ballooned from $335 million to about $2.5 billion in the past five financial years.

“The latest analysis out of Treasury tells us that disasters and a warming climate have big, economy-wide effects,” Dr Chalmers will say.

“They’re making a big impact on the budget, especially when it comes to our disaster response.”

Parts of Australia are preparing for the worst bushfire season since the Black Summer fires across 2019-20 after the Bureau of Meteorology officially declared an El Niño, which means drier days.

Damage from the Black Summer fires and October 2022 floods cost the economy about $3 billion.

The establishment of a net-zero authority to oversee the nation’s pathway to bringing down carbon emissions was touted by the treasurer as an opportunity for the regions to seize opportunities as renewable energy plays a bigger role.

This article was first published by AAP.