Federal Treasurer Jim Chalmers is set to announce that Tropical Cyclone Alfred has caused a $1.2 billion hit to the economy, with the long-term effects still unfolding, particularly in tourism areas like the Gold Coast.
The cyclone, which hit some of Australia’s most popular tourist spots, caused significant damage to beaches and coastal infrastructure, including steep sand erosion and the destruction of access routes.
“We lost about 4 million cubic metres of sand, which is roughly 320,000 semi-trailer loads,” said the Gold Coast Council. Cleanup efforts are ongoing, with heavy machinery working to restore the area.
Chalmers, the Logan-based MP, will address the Queensland Media Club tomorrow and announce a co-funded $30 million for recovery, focusing on repairs to roads and infrastructure.
The impact also extended to Northern New South Wales (NSW) towns. Chalmers’ speech will come just a week before he presents the Federal Labor government’s fourth budget.
“This budget will reflect some of these immediate costs, and we will plan for future expenses,” Chalmers is expected to say, based on a speech shared with News Corp.
He anticipates that the total recovery cost will exceed $1.2 billion, placing additional pressure on the national budget.
Damage in Northern Queensland
The storms and flooding that affected parts of North Queensland earlier this month caused widespread damage to homes, businesses, and infrastructure, said Liam Walter, Director of Mitigation and Extreme Weather Response at the Insurance Council of Australia.
Insurance claims have already topped 7,600, with an estimated total cost of over $164 million across Townsville, Ingham, Innisfail, Mission Beach, and Cardwell.
The Commonwealth’s mid-year budget update in December set aside $11.6 billion for disaster support, but Chalmers is expected to announce that the figure will likely rise to at least $13.5 billion.
“How we fund recovery and rebuild communities will be a key factor in the budget we present next week,” Chalmers will say.
To date, around 44,000 insurance claims have been filed, with early projections suggesting that the Cyclone Reinsurance Pool will cover losses of approximately $1.7 billion.
“We don’t yet know the exact cost to the budget, but it will be substantial,” Chalmers will add.
Ongoing Disruption
The aftermath of Cyclone Alfred continues to affect communities in NSW and Queensland. Locals, along with domestic and international travelers, have faced significant damage, high water levels, and widespread disruption.
In 2023, Cyclone Jasper and the Gold Coast, Scenic Rim, and Logan Christmas storms caused the state to lose approximately $2 billion.
Travel Insurance Payouts
As of March 13, Southern Cross Travel Insurance (SCTI) had received 37 claims from Australian customers, paying out over $12,000 in support.
“We’ve been able to assist a wide range of customers, and we’re seeing more claims due to extreme weather events. It’s crucial for travelers to protect their investment in holidays,” said SCTI CEO Jo McCauley.
McCauley highlighted the growing trend of extreme weather events driven by climate change. “In 2024, we saw a 16% increase in disruptions caused by natural disasters or severe weather compared to 2018. With Cyclone Alfred, 2025 is already on track to account for 9% of 2024’s catastrophic claims.”
Recent SCTI research also revealed that while travelers recognize the importance of travel insurance for international trips, many underestimate the need for it on domestic journeys. Only 41% of travelers prioritize domestic travel insurance.
“When people think of travel insurance, they usually think of medical costs first. However, unexpected issues like rebooking flights or canceling accommodations can add up quickly. That’s why it’s vital to have insurance for both domestic and international trips,” McCauley explained.
Government Support
The Australian Government has extended its Disaster Recovery Payment to Brisbane, Ipswich, the City of Moreton Bay, Toowoomba, and areas in the Scenic Rim and Somerset council regions. The Disaster Recovery Allowance provides up to 13 weeks of income support for workers and sole traders, which will now include Bundaberg and Toowoomba.
Related topics:
- Queensland Tourism and Hospitality Operators Urge Visitors to Stick with Their Plans After Cyclone Alfred
- Sunshine Coast Tourism Sector Welcomes Back Visitors
- Trafalgar and Insight Vacations Announce Record Number of Guaranteed Departures for 2025
