The Insurance Council of Australia has pressed for more federal funding to help local governments with flood resilience work.

It says a Commonwealth-backed $30.15 billion flood defence fund – which it first called for last year – could help address the “limited resources” challenge facing local authorities.

The proposed fund would comprise $15 billion for new flood defence infrastructure; $5 billion to strengthen properties in harm’s way; $10 billion for managed relocation; and $150 million for future-proofing current flood mitigation infrastructure.

“Local governments would be the key delivery partner for this investment, with their unique knowledge of local factors and on-the-ground engagement with the community,” the council says in a submission to a federal inquiry.

“At present, however, local governments do not have the resources to make this necessary investment, and in many cases are not equipped to even undertake the studies required to access existing programs like the Disaster Ready Fund.

“With approximately 1.2 million properties at risk of flooding, we see the flood defence fund as a necessary response to our most costly extreme weather type.”

The House of Representatives Standing Committee on Regional Development, Infrastructure and Transport is holding an inquiry into local government funding and fiscal sustainability. Its terms of reference include emergency, disaster recovery and resilience funding.

ICA representatives will appear before the committee on Friday.

“Local councils are on the front line of Australia’s worsening natural disaster challenge,” ICA deputy CEO Kylie Macfarlane said.

“They play a critical role in land use planning and disaster preparedness and recovery, but the financial, regulatory and resource constraints they face are significant and growing.”

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