Federal Independent Senator Nick Xenophon forced a deal on Julia Gillard PM to get her flood levy across the line. It requires states to ‘take appropriate action’ on insuring themselves or the Federal Government would no longer pick up 75% of the repair bill.
It is expected to cost hundreds of millions of dollars each year to insure public assets and tax hikes cannot be ruled out.
Queensland councils expect they could be called on to seek insurance which could cost taxpayers about $180 a year to cover.