Natural disasters cost Australia $2.2bn in economic losses in 2025
Natural disasters cost Australia $2.2bn in economic losses in 2025
Australia has suffered $2.2 billion in economic losses from natural disasters during the first half of 2025, according to new Treasury analysis, The Guardian reported. The figure reflects a significant decline in retail and household spending, particularly following multiple severe weather events across the country.
Cyclone Alfred, the first cyclone in over 50 years to strike south-east Queensland, and widespread flooding in New South Wales’s Hunter and mid-north coast regions were among the most damaging events. The NSW floods alone damaged around 10,000 buildings, left 1,000 uninhabitable, and caused five fatalities.
Treasury expects most of the economic impact to be concentrated in the March quarter, with preliminary data showing Queensland’s retail trade declined by 0.3% in February and 0.4% in March. Household spending also dropped slightly. Federal Treasurer Jim Chalmers acknowledged both the human and economic toll, while highlighting the government’s disaster assistance efforts and economic resilience.
Emergency Management Minister Kristy McBain said disaster recovery would take time and confirmed further funding through the Disaster Ready Fund, with $200 million allocated for 2025–26. Officials stressed the importance of long-term recovery, resilience-building, and coordinated government support.
