Builders, planners and insurers are calling on the State governments to overhaul their approach to land use planning urgently. They want to ensure that no more homes are built on flood plains without regard to risk. 

This concern is widespread and includes the Illawarra Shoalhaven. We have had some catastrophic floods in the area, and the majority who do accept that climate change is contributing to more intense rain events, are concerned that flooding will get worse.

In response to the flood emergency of recent years, the Insurance Council of Australia (ICA), Master Builders Australia (MBA) and the Planning Institute of Australia (PIA), supported by the Australian Local Government Association (ALGA), convened the inaugural National Industry Roundtable: Land Use Planning and Resilience on 27 July.

Around 60 experts from government, financial services, property, and community joined the discussion. When thinking about future housing challenges, the Roundtable meeting called on state and territory governments to urgently rethink planning rules so no more homes are built in high-risk flood-prone locations.

The chair of the Property Council Illawarra, Jennifer Macquarie, informed The Bugle that “It’s already a State Government requirement that new development has to be built above the 1:100-year flood level (i.e. worst predicted flood in 100 years). The biggest growth areas in our region are West Albion Park and Dapto, both of which have plenty of creeks and a history of flooding, so the subdivisions are having to be designed around that.”

Ms Macquarie mentioned that “The standards were different in older suburbs. Some were built to a 1:20 year flood level, or a 1:50 year level, so these are the suburbs that flood most frequently and suffer the most in big rain events. This makes in-fill development / urban renewal of old suburbs more challenging.” 

Recommendations for reform have been released in a communique from the three sponsoring organisations to be sent to planning ministers to enable discussion on the issue.  

The roundtable heard that all Australians are bearing the costs of worsening extreme weather events, which are increasing because of historic planning decisions.

It was agreed that without reform, population pressures and inadequate planning laws will see further development of flood-prone land, putting lives at risk, costing taxpayers billions of dollars in recovery and remediation, and adding to an already strained insurance sector.

Andrew Hall, CEO Insurance Council of Australia, said, “The flood events of 2022, with almost 300,000 disaster-related claims costing around $7 billion, has driven up premiums and has resulted in affordability constraints for those at the highest risk.”

CEO Master Builders Australia, Denita Wawn said, “With a housing crisis at the forefront for many communities and a growing population, we must ensure that our planning laws are fit for the future and take an appropriate risk-management approach.

“Governments are encouraged to take a balanced approach to development and resist a default of building out with alternative considerations such as building up to take the pressure off the housing system and supported with more resilient and adaptable infrastructure to extreme weather events.

“Without fit for purpose planning laws, technical building regulation will always fail. The housing industry needs clear and concise rules that allow the industry to function and the community to have confidence.

President of Australia Local Government Association, Councillor Linda Scott, commented, “Australia’s 537 councils play a vital role in building resilient communities, assisting in every corner of the nation to ensure our communities can better prepare for, respond to and recover from increasing natural disasters.

“It’s crucial we rebuild damaged local infrastructure to a more resilient standard. Councils will continue to strongly advocate for ‘building back better’ as a core value and overriding principle of joint state/federal Disaster Recovery Funding Arrangements.”

Matt Collins, CEO Planning Institute of Australia, comments, “Planning is a critical tool for influencing the level of future disaster risk, and our changing climate means we need to act now to limit the impact of extreme weather on our communities.

“By adopting new risk-based policies and investing in better mapping and data, we can ensure development avoids or minimises exposure to flood hazards.”

Jennifer Macquarie adds, “Climate change isn’t the only contributor to increased flood risk. Councils own the drainage systems and are responsible for keeping them clear of rubbish so that when there is a flood, the pipes and culverts are not blocked by old mattresses, tree branches, or whatever. 

“Tight budgets for maintenance mean that the drainage systems are not cleaned as frequently as they could be, and water can’t get away in a flood. In addition, private property owners also build illegally within drainage easements, not really considering that the structure will block/divert overland flow of water in a high rainfall event.”

So, it’s a complex issue, and one that’s on the radar for many people. Everyone’s insurance premiums have gone up, and we are all paying indirectly for the increased claims made due to more extreme floods and bushfires.