‘Stop building in flood plains’: Assistant Treasurer

Speaking on ABC’s Q+A discussion last week, Assistant Treasurer Stephen Jones, said the government was focused on “ensuring we’re building infrastructure that can withstand the impacts of severe weather events”.

Ahead of the federal budget due to be handed down next week, Mr Jones said that there would be “more to say” around specific policies.

“What we’ve already announced and what we’re already well under way is ensuring that we are putting Commonwealth money into resilience,” the Assistant Treasurer said.

“We know that building a house in a particular place is going to put the residents of that place at risk, ‘cause you’re building in a flood plain or you’re building in a dangerous area, then we should stop doing it.

“Climate change and severe weather events are no longer something that’s happening in the future… it’s upon us.”

It comes as parts of Victoria, Tasmania and NSW grapple with another spate of extreme flood events, with many parts of the state inundated and heeding more warnings.

The Bureau of Meterology has said "drier weather has returned to flood affected parts of Victoria, Tasmania and New South Wales today, however floodwaters remain high and continue to rise at some locations".

In response to the latest disaster, the federal government’s one-off, non-means-tested Disaster Recovery Payment (of $1,000 per eligible adult and $400 per eligible child) has kicked in for eligible families, as well as banks announcing support to customers.

As extreme weather events become more frequent, the conversation around building resilient buildings has become paramount.

Mr Jones said bluntly during the panel discussion that “we’ve got to change our building standards” to ensure buildings are “fit for the future”.

“Instead of putting all of our eggs in the basket of repairing the damage after it’s done, a lot more effort has got to go into ensuring that our communities, our buildings and our infrastructure is a lot more resilient in the first place,” Mr Jones said.

Mr Jones has pledged at least $200 million a year will be spent on “firming up our infrastructure” and building resilience.

Given thousands of homes across the country have experienced damage from cyclones, bushfires and floods this past few years, which has jacked up insurance premiums making many unsustainable, Mr Jones was asked what assistance would be provided towards insurance premiums.

“I don’t think subsidising premiums, insurance premiums, is the right way to go, because insurance premiums are essentially the price of covering the risk, the price of rebuilding something after it’s been damaged,” Mr Jones said.

“It is far more effective… we can reduce the risk and ensure that the buildings are built better, the infrastructure is built better, and we’re not building stuff in the way of hazards in the first place. A much better and sustainable approach.”

Major bank launches energy-efficient incentive

In addition, as the cost of living and energy prices increase, the National Australia Bank (NAB) has announced a lower variable rate for eligible home loan customers for homes that meet “energy efficient criteria”.

The banks said the eligible property must have at least a NatHERS seven-star rating or a Green Building Council of Australia Green Star rating.

Customers with a deposit of less than 20 per cent could benefit from a lower variable rate (up to 1 per cent discount), and a 5 per cent rate reduction on the cost of Lenders Mortgage Insurance (LMI) through NAB’s insurance partner QBE.

The offer is available to customers purchasing new or existing homes or refinancing.

NAB executive, home ownership, Andy Kerr, said making buildings more sustainable is essential to addressing climate change.

“With Australian homes contributing more than 15 per cent to Australia’s total emissions, this is a small but important move in the right direction,” Mr Kerr said.

He added that the move was an important step in addressing cost-of-living pressures.

“These days, people building or buying a new home are prioritising sustainable features and energy efficient designs. We also know that homes with these features help homeowners reduce their living costs which is absolutely critical right now,” Mr Kerr said.

“This will also provide first home buyers with additional support to enter the housing market by reducing the cost of lenders mortgage insurance.”

[Related: Banks offer financial support for flood affected customers]