Since February this year, Queensland and New South Wales have been hit by successive floods, with NSW experiencing its worst flooding in 50 years — hundreds of schools have had to suspend classes. The floods across eastern Australia are expected to cause around AUD 1.5 billion in damage, and the Australian government has rolled out a series of disaster-relief measures to support affected families and businesses.
This article focuses on small-business grants available in Queensland and New South Wales and flood-related home insurance.
New South Wales (NSW)
Small businesses and not-for-profit organisations
If you are a small business or not-for-profit organisation, you may be eligible for the Storm and Flood Disaster Recovery Small Business Grant. You can receive up to AUD 50,000, of which $15,000 is paid upfront, with the remainder payable on provision of receipts for recovery-related expenditure.
Primary Producers special grant
You can check whether your business qualifies as a Primary Producer on the ATO website
URL:
https://www.ato.gov.au/business/primary-producers/primary-production-activities/
If you qualify as a Primary Producer, you can apply for a special grant of up to AUD 75,000. AUD 15,000 is paid upfront on provision of proof of damage, and a further AUD 60,000 can be accessed as needed.
Special grant for sporting and community clubs and associations
Sporting and recreational clubs directly affected by the floods may be eligible for low-interest loans to help cover the cost of restoring facilities and equipment. They can also apply to NSW Treasury for a further grant of up to AUD 2,000 to assist with clean-up.
For more detailed information, please refer to the NSW Government website: https://disasterassistance.service.nsw.gov.au/
Queensland (QLD)
The Australian Government and the Queensland Government have rolled out a series of support measures under the "Disaster Recovery Funding Arrangements".
Help for small businesses and not-for-profit organisations
The table below outlines some of the grants and loans available to businesses and not-for-profit organisations affected by the natural disaster.
Primary Producers special grant
Primary Producers can be individuals, trusts, partnerships or companies whose main business is one of the following:
Cultivation of plants or animals (or both);
Planting or felling of trees (or both); or
Fishing or pearling (or both)
Primary Producers can apply for a special disaster grant of up to AUD 75,000. AUD 15,000 is paid upfront on provision of proof of damage, and a further AUD 60,000 is available as needed on provision of proof of expenditure. You can use this funding for various clean-up and recovery activities, such as salvaging crops and repairing damaged equipment.
Primary Producers may also apply for the disaster assistance loans and disaster assistance (essential working capital) loans mentioned above.
Special grant for sporting and community clubs and associations
This grant provides eligible clubs and associations with up to AUD 20,000 for cleaning, repairing or replacing equipment damaged or lost due to the disaster.
For more detailed information, please refer to the Queensland Government website:
https://www.qrida.qld.gov.au/
Home insurance
This round of flooding has reminded many buyers to pay attention to choosing higher ground, and to take home-related insurance more seriously. The four most common types of home insurance are:
Building Insurance
Home Contents Insurance
Public Liability Insurance
Landlord Insurance
If you purchased your home with a bank loan, building insurance is generally mandatory. Home contents insurance, landlord insurance and others are optional depending on your needs, and you can check directly with insurers.
Building insurance
Building insurance mainly covers the structural components of the home, including structural damage caused by factors other than the owner. In the case of losses or damage caused by natural disasters such as this flood, compensation can be claimed through this insurance — though of course it depends on the specific terms of the policy you purchased.
If you did not have insurance but still suffered losses, you can also apply to the state government for assistance. For example, Queensland offers the Essential Household Contents Grant and the Structural Assistance Grant, but certain conditions, such as an income test, must be met.
Can you purchase Floods Cover separately?
Flood insurance can actually be included in building insurance, home contents insurance or other types of cover, and you can choose to opt out when taking out a policy, or add it on separately. For example, if you think the likelihood of your home being flooded is high, or you consider floods cause greater and more widespread damage than other disasters, you can add flood cover on top of the natural-disaster cover already in standard building insurance.
Necessary steps after a flood
Whether or not you have insurance, and whether or not you can claim compensation, you should take the following steps first if you are hit by a flood:
First: record the damage as thoroughly as possible
When you start cleaning up, take photos or videos of damaged items — these may later be used as evidence
Second: clean up and tally losses
Try to list every item damaged or destroyed by the disaster, with as much information as possible. For items that must be discarded, photograph them first or record the damage, documenting in as much detail as possible
Third: collect receipts and documents
Gather purchase receipts, warranty certificates, bank statements and similar documents
Finally
In short, extreme weather has become increasingly frequent in Australia in recent years. To protect a home worth hundreds of thousands or even millions of dollars, learning about relevant insurance options in advance is well worth the effort. If a dispute arises during an insurance claim, we are very happy to provide you with the relevant legal services.
