THE HON DAVID LITTLEPROUD MP
Shadow Minister for Emergency Management
Shadow Minister for Tourism
Federal Member for Maranoa
9 October 2026
Shadow Minister for Emergency Management David Littleproud has welcomed the Albanese Labor Government’s humiliating backdown on its plan to embed a 50:50 funding model into the Disaster Recovery Funding Arrangements (DRFA), but says the debacle raises serious questions about Labor’s competence in managing disaster response.
The Government will instead retain the existing cost-sharing arrangements, in which the Commonwealth reimburses the states and territories up to 75%, depending on the criteria. The backdown follows months of uncertainty, concern and fierce criticism from within the state and local government sector.
“Labor’s attempts to impose a blanket 50:50 funding split for disaster recovery was always a deeply flawed proposal, and it was shamefully clear that it was never developed in genuine partnership with state and territory governments,” Mr Littleproud said.
“The states and territories carry the vast bulk of the responsibility for leading response efforts on the ground after a natural disaster. For the Albanese Government to blatantly cost-shift the funding burden onto them and label it as ‘reform’ was a cynical move that reeked of arrogance.”
Opposition to the proposal was particularly pronounced in Queensland, Australia’s most disaster-prone state.
“Queensland demonstrates just how unfounded, unfair and unjust these attempted changes were. Under the current DRFA framework, the Commonwealth covers around 64% of funding for disaster recovery in Queensland. Labor’s new 50:50 model would have cost the state billions in lost financial support,” Mr Littleproud said.
Mr Littleproud said today’s announcement would come as a huge relief to many local governments across Australia, especially in Queensland, that were concerned Labor’s changes would have left their communities more exposed to cyclones, floods and bushfires without the financial support they need for recovery.
“Disaster-prone local councils across regional, rural and remote Australia simply do not have the rate base, the resources, or the practical capacity to absorb extra costs associated with natural disaster recovery, and I commend them on today’s result,” Mr Littleproud said.
“For the Albanese Government to have stoked so much fear and uncertainty within this crucial sector over the past few months is nothing short of a disgrace.”
When the 50:50 proposal was first announced on 5 June 2026, Minister for Emergency Management Kristy McBain claimed it acted on recommendations from the Independent Review of Commonwealth Disaster Funding, led by former Australian Federal Police Commissioner Andrew Colvin. However, embedding 50:50 cost sharing was never what the ‘Colvin Review’, and its 47 recommendations, called for.
Mr Littleproud said the abandonment of the proposal was an abject embarrassment for Minister McBain.
“It is clear that Minister McBain tried to use the Colvin Review as a smokescreen to cut the Commonwealth’s contribution to disaster recovery. After months of publicly defending her 50:50 funding farce, she has now backed down.
It’s a welcome outcome, but a total humiliation for the Minister,” Mr Littleproud
