The Climate Change Authority warns extreme natural hazards will cost Australians about $8.7 billion a year by 2050 if action is not taken to reduce risk.  

In a new report, the agency calls on the federal government to lead a “co-ordinated, comprehensive and well-resourced national adaptation agenda”.  

The paper focuses on the climate threat to properties, saying 589,000 more homes are at high risk of become uninsurable in the next five years due to flood threats.  

“Devastating flooding on the NSW Mid North Coast last month is the latest example, but won’t be the last,” the agency’s chair Matt Kean said. 

“Authorities will need to review and tighten building codes. Parts of coastal Queensland and WA not now covered by cyclone construction standards may need to be, and soon.”  

The report says frameworks set out in the government’s National Adaptation Plan are a “critical step”, but more work is required to ensure it meets Australians’ needs.   

It calls for more co-ordinated investment in infrastructure and services that offer benefits beyond risk reduction, such as energy and insurance cost relief.  

The report also emphasises the importance of up-to-date building standards.  

“These are the kinds of practical steps we can take to make Australia more resilient in a changing climate,” Mr Kean said. 

“And they’re worth it – every dollar invested in reducing climate risks can save up to $11 in recovery costs.”  

The authority – which is tasked with providing independent advice to government – also calls for action to improve household education on climate risks. 

“With better information, Australians can make informed decisions about where to build or buy a new home, whether to rebuild after a climate-related disaster or relocate, and what steps to take to reduce their home’s physical climate risks,” it says.  

The Insurance Council of Australia has welcomed the report, saying it offers “practical, achievable steps to making Australia more resilient in a changing climate, [which] align with the insurance industry’s long-term advocacy on these vitally important issues.”

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