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Fallen tree in Burleigh Heads as Queensland, Australia, experiences severe rains and flooding from Tropical Cyclone Oswald. - Source: Getty Images
New Zealanders living in flood-stricken southeast Queensland are set to benefit from lower insurance premiums.
The Gillard Government will invest $125 million (NZD$145 million) over two years to reduce flood risk and natural disaster insurance premiums for residents living in flood prone areas.
The project will invest $62.5 million a year in targeted flood and other natural disaster mitigation measures.
It's estimated that money spent on building flood levees near the town of Roma, and upgrading flood defences in Ipswich, could lower insurance premiums as much as 33%. Average insurance premiums in Roma are currently around $3500 per household each year.
The Federal Government has spent $7.5 billion dollars on natural disaster recovery over the past four years and is encouraging state and territory governments to increase their own contributions to similar projects.
The announcement comes as residents with homes and businesses in the town of Maryborough prepare to be inundated by the local river when it peaks at around 8 metres tomorrow morning.