Australian Treasurer Jim Chalmers has stated that former Tropical Cyclone Alfred has created a AU$1.2 billion hole in the upcoming federal budget. The economic impact of this natural disaster cannot be ignored, and the government is actively responding to the situation.
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03-17, 2025The government has announced an expansion of disaster recovery subsidies and payments, including Brisbane, Ipswich, Moreton Bay, Toowoomba, and Somerset in Queensland, as well as Clarence Valley, Richmond, Bellingen, and Kyogle in New South Wales. Eligible adults can receive a one-time subsidy of AU$1,000, and each child can receive AU$400.
Minister Chalmers stated that the government's disaster response measures and subsidies will result in billions of dollars in spending for the budget, which will be reflected in the budget released next Tuesday. The Treasury estimates that former Tropical Cyclone Alfred will cause approximately AU$1.2 billion in economic losses, accounting for about a quarter of GDP.
This AU$1.2 billion will be used to rebuild affected communities and will be included in the total AU$13.5 billion disaster response and recovery fund. Minister Chalmers also expects that fruit and vegetable prices will be affected due to flooded farms, and construction costs will also face upward pressure as residents begin to rebuild their homes. Therefore, the budget will face considerable additional expenditure.
Although the past two budgets have achieved surpluses, totaling an improvement of AU$200 billion, Minister Chalmers stated that he will "announce a deficit this year," but this deficit will be "far smaller than the deficit we inherited from our political opponents." He also mentioned that at the height of the cyclone, approximately 5 million people and 2 million households were threatened in Southeast Queensland and Northern New South Wales.
On March 8, the Category 2 storm was downgraded to Category 1 after making landfall on islands in Southeast Queensland and further weakened into a tropical low as it crossed the mainland coast. More than 450,000 households lost power, and the government estimates that approximately 12 million working hours were lost due to business closures and residents being told to stay indoors.
The federal budget, originally scheduled to be released on March 25, was affected by Prime Minister Anthony Albanese's expected announcement on March 9 of a federal election to be held on April 12. However, this announcement plan was affected as "Alfred" slowed and delayed its landfall to the same weekend. On the eve of the cyclone's expected landfall, Albanese confirmed that he would not announce the election that weekend or the following Monday, stating that now is not the time to consider politics but to take care of each other and get through this together. This means that an election cannot be held on April 12 due to the legally required 33-day campaign period. Minister Chalmers will release the federal budget as planned next week, and the federal election is expected to be held in May.
