This audit assessed the effectiveness of the Attorney-General’s Department’s administration of the terms of the Natural Disaster Relief and Recovery Arrangements Ministerial determination.

Introduction

Australia is exposed to natural disasters on a recurring basis. Prime responsibility for the response to a disaster rests with state and territory governments. Nevertheless, as natural disasters often result in substantial expenditure by state governments, for many years the Commonwealth has provided financial assistance to the states for recovery and reconstruction activities, as well as to support the provision of urgent assistance to disaster affected communities.

In the context of its recent inquiry into natural disaster funding arrangements, the Productivity Commission2 has reported that, over the past decade, the Australian Government has spent around $8 billion on post‐ disaster relief and recovery. Another $5.7 billion is expected to be spent over the forward estimates for past natural disaster events. This assistance has been principally provided through the Natural Disaster Relief and Recovery Arrangements (NDRRA). NDRRA is a Ministerial determination administered by Emergency Management Australia (EMA) within the Attorney‐General’s Department (AGD).

In addition, for two states, oversight and accountability measures were introduced in early 2011 to supplement the existing NDRRA arrangements following the widespread flooding that occurred in the eastern states and Queensland tropical cyclones over the 2010–11 Australian spring and summer seasons. These measures were seen as prudent given preliminary estimates had indicated that the Australian Government would need to contribute $5.6 billion to the rebuilding of flood‐affected regions, to be funded under NDRRA. The additional measures were reflected in separate National Partnership Agreements (NPAs) signed with the Queensland and Victorian state governments. Of note was that the NPAs enabled the establishment of the Australian Government Reconstruction Inspectorate (the Inspectorate) to undertake reviews of reconstruction projects.

The objective of the audit was to assess the effectiveness of the Attorney‐General’s Department’s administration of the terms of the NDRRA Ministerial determination.