Extreme weather disasters will cost Australians $8.7 billion a year by 2050 without strong action to address climate risks. The surge in extreme weather disasters around Australia reinforces the need for national leadership on adaptation to keep communities safe in a changing climate. This report examines how climate change is increasing the frequency and severity of flooding, bushfires, extreme storms and coastal erosion, and the rising costs of these events for Australians.

The Australian Government can lead a coordinated, comprehensive and well-resourced national adaptation agenda which amplifies effort across all levels of government, businesses and communities. 

The report calls for governments to reduce the physical risks of climate change by:

• making the right investments in infrastructure and services
• ensuring standards, laws and regulations are fit-for-purpose for a changing climate
• equipping Australians with the information and resources to improve their decision-making – including on decisions like where to build, buy or renovate a home. 

Key findings

• Millions of Australian homes face escalating risks from natural hazards, which are growing more intense due to climate change.
• Bushfires, cyclones and floods are already estimated to cost Australian homeowners around $4 billion annually.
• Every dollar invested in adaptation reportedly saves $2 to $11 in recovery costs.
• The impacts of climate change go far beyond the financial costs. Climate hazards harm wellbeing, health and safety.
• Investing in practical actions that reduce physical climate risks can help avoid or reduce financial and other hardships.