A new Treasury analysis estimates natural disasters have cost Australia $2.2 billion for the first half of 2025.
This was impacted mostly by Cyclone Alfred and flooding across NSW and Queensland.
Despite the economic loss, which will be reflected in the March quarter National Accounts on Wednesday, Treasurer Jim Chalmers said the government’s top priority was to fund the recovery and rebuilding of homes.
"The human impacts matter to us most but the economic cost is very significant too and we'll see that in Wednesday's National Accounts," he said.
"Because of the progress Australians have made together in the economy, with inflation down, debt down and unemployment low, we're in a stronger position to provide support when communities need it most."
Partial data for the March quarter shows natural disasters majorly impacted retail trade and household spending.
According to data from the Australian Bureau of Statistics, household spending fell by 0.3% in March, with a 1.3% drop in Queensland.
Following the cyclone and floods, nominal trade also fell 0.3% in February and 0.4% in March in Queensland.
Flooding from the Hunter to mid-north coast in NSW during late May has also left 10,000 homes and businesses damaged or destroyed, with the Insurance Council of Australia reporting that more than 6,000 insurance claims have been made.
The government’s Disaster Assist website lists 27 different natural disasters that occurred from January to May, including floods, storms, cyclones and bushfires.
Prime Minister Anthony Albanese has also announced an additional $2 million in funding to the Rural Financial Counselling Service (RFCS) to help farmers access support during droughts.
The additional funding is aimed at helping enable the RFCS to employ more financial counsellors to help people in drought-affected communities.
"People put their heart and soul into their farms,” Albanese said.
“It's not just a business, it's a way of life, and they're very passionate about making a difference.
“They care about their properties, they care about what they do, and it can be devastating to have this long-term impact that we're seeing from this drought.”
