(Last Updated May 2025)
Don’t Rely Solely on Insurance
Insurance is important – if you can get it and afford it – but it’s not a guarantee you’ll be made whole. Payouts take time, claims can be knocked back on technicalities, and you might be underinsured without realising it. After the 2022 east coast floods, it emerged that nearly two-thirds of Lismore residents had no home insurance at all at the time. Many couldn’t afford the premiums. One Lismore shopkeeper, Adam B, had been quoted a $70,000 annual premium for flood cover – far out of reach. He rolled the dice and went without; when the record-breaking flood hit (two metres higher than any before), he was left with $500,000 in uninsured losses.
Even if you do have a policy, check it carefully. Are you covered for flash floods or just storm water? Is your sum-insured enough to rebuild at today’s soaring construction costs? (Building material prices jumped by double digits in recent years, meaning a rebuild can cost far more than when you first insured.) Update your cover limits annually to match current local building rates. And know that insurers often cap emergency accommodation payouts – if rebuilding takes a year but your policy covers six months of rent, you’ll need a plan for the gap.
Most critically, recognise that insurance money won’t flow immediately. After a disaster, assessors are inundated and payouts can take weeks or months. In the meantime, you still need to feed the family, pay for somewhere to stay, and replace basics. This is where your own financial preparedness kicks in.
Build a Cash Buffer for Crisis Times
Cash is king in a crisis. It’s not a cliché; it’s reality. When floods knocked out power and telco lines, we saw banks helicopter physical cash into Lismore because local ATMs were destroyed. Digital payments can fail in a disaster, so having a stash of actual banknotes can be a lifesaver. But beyond the immediate outage scenario, you need an emergency fund for the unpredictable expenses and income gaps that follow a disaster.
How much? Traditional wisdom says three to six months’ worth of expenses in an emergency fund. That’s a great goal, but let’s be realistic: many Australians are struggling to save anything at all. A recent survey found 1 in 3 Aussies have zero emergency savings – not a dollar set aside. The average person had about $12,000 in rainy-day funds, but that average hides the fact that millions have far less. So start where you can. Even $500 to $1,000 stashed away can make a huge difference when you’re living paycheque to paycheque. It could cover a few nights in a motel or a replacement fridge or simply fuel and groceries when you’re cut off from income.
To build this buffer, automate it. Skim a little from each pay into a separate high-interest savings account (one you won’t dip into for everyday whims). Treat it like a bill to your future self. Some folks round up transactions into savings; others throw in tax refunds or bonuses. Every bit counts. A young family in cyclone-prone Townsville who managed to save $50 a week by cutting takeaways – in a year they amassed about $2,500, which proved enough to get them through a month off work after a cyclone damaged their shop.
Where to keep your emergency money? A two-part strategy works best. Keep the bulk of it accessible in a bank account (online savings or an offset account if you have a mortgage – just ensure you can withdraw quickly). Then keep a portion in cash at home for when electronic access fails. I suggest a few hundred dollars in mixed notes: small bills ($20s, $50s) for buying essentials if EFTPOS is down. Store it somewhere safe and disaster-proof – a waterproof ziplock in your grab-and-go kit, or even a fire-rated safe. (During the Black Summer bushfires, one savvy retiree had a safe bolted in his garage with $1,000 in cash; his house burned down, but that safe and cash survived the inferno – money he lived on until the insurance came through.)
One more tip: spread your risk. If all your money is in one bank, and that bank’s network goes offline, you’re stuck. Consider keeping a secondary account with another institution (even one of the “big four” if you usually use a smaller bank), or a credit union account with a debit card. In a disaster zone, certain bank branches or ATMs might recover faster than others. Diversifying where you can access cash is like diversifying an investment – it adds resilience.
Prepare for Relocation and Housing Shocks
When a disaster forces you out of home, relocation can quickly become your biggest expense. After the 2022 floods, more than 4,000 Northern Rivers homes were deemed uninhabitable. Thousands of families suddenly needed somewhere else to live. The result? Overflowing motels, couch-surfing, even tent cities – and a surge in rental demand. With so many homes wiped out, vacancy rates plummet and rents in surrounding areas can skyrocket. (Nationwide, advertised rents jumped at a record pace of over 15% in 2024, and disaster-hit regions often fare even worse as housing supply shrinks overnight.)
Imagine this scenario: You’re living near the bush and a bushfire runs through your area. You’re safe, but your house isn’t. You need to rent a place for six months while rebuilding. You’ll likely be paying today’s inflated rent – perhaps 20-30% higher than a year ago – and you’ll need bond and advance rent upfront. If you already had a tight budget, this is a massive strain. For renters, it’s just as tough: you may have lost all your belongings and now have to compete for a new lease in a market with virtually no vacancies.
Action plan? Anticipate relocation costs in your emergency fund. In addition to the generic “3-6 months expenses,” earmark some savings specifically for housing needs. Think in terms of: If I had to leave home for a month, what would it cost? Budget for a couple weeks in a motel or holiday park cabin (prices often surge in crises, so be generous in your estimate), a rental bond (usually 4 weeks’ rent) and moving costs (truck hire, fuel, storage). For example, if rents in your area are $500/week, set aside $2,000 for bond, plus maybe $1,000 for immediate accommodation and $500 for misc expenses. These aren’t exact figures, but having something beats scrambling with credit cards later.
Also, know your support options. After major events, state and federal governments usually offer housing assistance. For instance, in NSW after the 2022 floods, uninsured residents could get up to $20,000 in “Back Home” grants to repair or replace essential household items. Queensland has emergency housing assistance and grants for bond or rent if you’re displaced. These programs aren’t guaranteed or unlimited, but they can fill gaps. The key is to apply early – relief funds are often first-come, first-served and require proof of impact (photos, damage reports, etc.).
Be wary of rent gouging in disaster aftermaths. Sadly, there have been cases where unscrupulous landlords hiked rents knowing desperate people had few options. Know your tenancy rights – in some states, excessive rent increases can be contested, especially if the property is partly uninhabitable. Keep documentation of the condition of any property you’re renting post-disaster. And if you feel you’re being exploited, report it to Fair Trading or your state’s rental tribunal. In crisis conditions, governments sometimes put pressure on landlords to be lenient (and public shaming of gougers is not uncommon). Community Facebook groups can also point you to compassionate landlords or house-swaps as an alternative.
Digitise and Safeguard Your Key Documents
When a cyclone’s ripped the roof off your house or a bushfire’s at your door, the last thing you should worry about is grabbing the filing cabinet. Go digital with your important documents before disaster strikes. In practice, this means scanning or photographing anything you’d hate to lose or need quick access to: IDs (passports, driver’s licences, Medicare cards), insurance policies, wills, property titles or leases, birth/marriage certificates, medical records, and a list of key account numbers (bank accounts, credit cards, insurance claim numbers, Centrelink references).
Store these digital copies securely in the cloud and offline. For cloud, you can use a trusted service (Google Drive, Dropbox, iCloud, etc.) – just ensure you remember the login info and use two-factor authentication for security. For offline, keep a USB flash drive with the files in your emergency kit (in a waterproof container). Encrypt it if the info is sensitive (there are simple tools to password-protect a PDF, for example). The idea is that if you end up in an evacuation centre or staying with friends in another town, you can pull up these documents on a borrowed computer or your phone.
Why is this so crucial? Because accessing relief often requires proof. Need to apply for a disaster relief payment or insurance claim? You’ll have to provide identity and fill forms. If your wallet is lost in the mudslide and your papers burned, having digital backups means you’re not stuck. After the Black Saturday fires, I interviewed survivors who couldn’t remember their insurance policy numbers or bank details when everything physical was gone – it delayed their claims by weeks. Conversely, a flood-affected friend of mine had photos of all her cards and documents on her phone’s cloud backup; even though the phone was ruined, she logged into iCloud on a library computer and had what she needed to expedite help.
Another tip: set up mail redirects and paperless statements. In a disaster, postal service to your address may be disrupted or your mailbox destroyed. Switch to email communications for bills and bank statements where possible. If you’re displaced, Australia Post offers a free mail redirection for disaster victims – but you need ID to set it up, which loops back to why having digital ID copies matters.
Finally, consider a fireproof, waterproof safe at home for original documents (and that emergency cash). These safes aren’t foolproof in extreme events (nothing is), but they often protect contents through moderate fire and flood conditions. At the very least, put important papers in sealed plastic bags at a high place.
Ensure Access to Money During Outages
Disasters often mean widespread power outages and communications blackouts. No power = no EFTPOS, no internet banking. How will you buy fuel, food or supplies if all you have is a plastic card or a phone app? This is where that physical cash reserve we discussed becomes vital. During the lead-up to Cyclone Alfred last summer, authorities explicitly urged those in the cyclone’s path to have cash on hand because ATMs and card networks could go down. They were right – some towns had no electronic access for days. Cash was the only currency that worked for a while.
Even beyond regional disasters, Australia has seen tech outages cripple payments nationwide (remember the 2024 CrowdStrike fiasco that knocked out major payment systems?). The federal government is now mandating retailers keep accepting cash for essentials, precisely because “cash provides an essential fallback when digital payments break down,” as Assistant Treasurer Stephen Jones put it. So, keep a stash of notes – and keep some on you if there’s warning of an event. If you evacuate, grab that cash in your go-bag.
Aside from cash, think of other ways to maintain access to funds:
- Multiple cards: Carry at least one debit and one credit card, preferably from different banks or card networks (Visa/Mastercard). If one system is offline, the other might work. Also, keep a card outside your wallet (in your car or bag) so you have a backup if you lose your wallet during the chaos.
- Offline transactions: Some banks offer limited offline withdrawal capabilities – for example, you might be able to withdraw a small amount over the counter with ID even if systems are down, or use phone banking if you can call. Know your bank’s emergency options. During the Lismore floods, some local bank branches arranged manual cash disbursements to customers using old-school ledgers once communications improved.
- Battery backup: Keep a charged power bank to revive your phone. Not directly a financial tip, but if you can power your phone, you might get mobile internet once towers are restored, enabling you to transfer funds or use banking apps sooner. Also, download your bank’s app and make sure it’s up to date; some apps allow certain functions offline or have info like your account numbers.
- Memorise or record critical info: If you had to ask someone to send you money via bank transfer, would you know your BSB and account number by heart? Jot down key financial info (account numbers, insurance policy numbers, emergency contact phone numbers for your bank/insurer) on a small card and keep it secure. That way, even with no phone, you have the details to arrange help (like asking a family member to deposit funds into your account, etc.).
The bottom line is to not rely 100% on tap-and-go. Australia may be inching toward a cashless society in daily life, but when disaster strikes, cash can literally keep you alive.
Beware of Scams and Price Gouging After Disaster
Crises bring out the best in communities – and, unfortunately, the worst in some crooks. Scams proliferate after natural disasters. In the wake of the 2022 floods, authorities reported “unthinkable” frauds where scammers impersonated charities, government agencies, even the SES, to fleece victims of relief money. Posing as a helpful voice on the phone or a kind stranger on Facebook, these fraudsters prey on people’s desperation.
Stay on guard. Golden rule: if someone contacts you unexpectedly asking for money, personal details or offering fast-tracked help for a fee, be skeptical. Legitimate charities don’t ask for gift cards or odd payment methods, and government officials won’t mind if you say you’ll independently verify their identity. Always donate through official websites or well-known organisations – or via government-coordinated appeals. If you’re applying for assistance, ensure you’re on the real government website (look for .gov.au addresses for Australian services).
Another scam angle: dodgy contractors. After a cyclone or bushfire, you might get door-knockers offering quick repairs or debris clean-up for cash upfront. They might even claim to be “insurance sanctioned”. Be very cautious. Never pay the full amount up front for repairs. If a job is urgent (tarping a roof, say), try to use contractors recommended by your insurer or local council. Ask for identification and a written quote or receipt. Unfortunately, there have been cases of “travelling tradies” who swoop in after disasters, take deposits, and disappear without finishing work.
On the flip side, price gouging can hit essential goods and services. We’ve heard of $10 bottles of water in bushfire zones or exorbitant rates for tree removal. The ACCC and state consumer authorities do monitor this, and in some declared disaster situations there are laws against raising prices beyond a certain margin. But enforcement is tricky in real time. Your best defense is to shop around (if you can) even in a crisis. Communities often share info on social media about who’s got fair prices (e.g. “Servo on Main Street is selling fuel at normal price, don’t go to the one on the highway charging double.”). If you encounter blatant gouging, report it to the ACCC or your state’s Fair Trading – they have hotlines for exactly this.
One more thing: insurance pitfalls post-disaster. This might not be an obvious “scam,” but it’s a financial trap. When you’re stressed and exhausted, you might be tempted to accept a quick cash settlement from your insurer or to not read the fine print on repair contracts. Take a breath. Don’t sign a full settlement if you’re not sure it covers all your losses – once you accept, you often can’t claim more. Insurers might advance you a portion for immediate needs; that’s fine, just ensure it’s noted as an interim payment, not final. If in doubt, get free legal advice (organisations like Legal Aid and Financial Rights Legal Centre offer disaster-related insurance help). And keep receipts for everything you spend due to the disaster – these can bolster insurance and relief claims or be tax-deductible/reimbursable later.
Tap into All Available Support
When you’re in the thick of disaster recovery, pride or plain lack of awareness might stop you from accessing help that’s out there. The Australian system actually has a lot of support mechanisms – make use of them. You’ve been paying taxes and bank fees all these years; this is the rainy day (sometimes literally) those systems are meant for.
Government disaster payments: For major declared disasters, the federal government activates the Disaster Recovery Payment – a one-off lump sum, currently $1,000 per adult and $400 per child. This is through Services Australia (Centrelink). It’s not means-tested; if you meet the criteria (e.g. your home was severely damaged or destroyed, or you were injured), you get it. There’s also the Disaster Recovery Allowance, short-term income support if you can’t work due to the disaster (essentially paying you the JobSeeker rate for up to 13 weeks). These can take a bit to come through, but apply as soon as you’re safe and have access. You can do it online if you have a MyGov account, or via phone. If documents are required, don’t let that stop you – submit what you can, and note that you’ll provide more later (Centrelink often accepts statutory declarations if official documents are lost).
Each state has its own extra help: emergency hardship grants (small payments like $500 for immediate needs), housing repair grants (like the NSW $20k Back Home scheme we mentioned), and concessional loans for longer-term rebuilding. Service NSW and local recovery centres in other states act as one-stop shops for these. Even if you aren’t sure you qualify, register and talk to the reps – they might point you to something you didn’t know about.
(note that the above was accurate as of May 2025 but you should always check for the latest information when it comes to government programs)
Banks and lenders: Don’t wait for them to offer – call your bank’s hardship line and tell them you’ve been affected by a disaster. Australian banks have dedicated disaster relief policies. Common measures include: a pause on mortgage and loan repayments (often 3–6 months) – this can free up cash flow when you need it most; waived fees and penalties (e.g. if you miss a credit card payment or need to break a term deposit for cash, they’ll often waive interest penalties); and sometimes emergency credit or grants. For example, NAB offers $1,000 grants to customers severely affected by natural disasters– essentially free money to tied-over their clients in crisis. Other banks might extend a low or zero interest short-term loan. The key is to ask. I’ve heard from many people who were pleasantly surprised by how flexible their bank was – but you must communicate early.
If you’ve lost your debit or credit cards in the upheaval, ask your bank for an emergency replacement or a temporary solution. Some banks can arrange cardless cash withdrawal via ATM using their app (generate a code on your phone to get cash without a card). If you’re stranded away from home, they might courier a new card to you at a temporary address.
Utility and bill relief: Electricity, gas, water, phone – if your home is uninhabitable or you’re financially smashed, contact your providers. Many have hardship programs that kick in for disasters. They might freeze your bills for a while, set you up on a payment plan, or allow you to disconnect without fees. After big events, some utility companies even announce bill waivers for affected postcodes (for instance, waiving network reconnection fees, or giving credit for spoiled food losses during prolonged power outages). It’s worth spending an hour to call or email each major biller and explain your situation.
Insurance help: Yes, we talked about not relying solely on insurance, but if you are insured, use every feature you’re entitled to. Most home policies include emergency accommodation coverage – your insurer will reimburse you (sometimes even pay upfront) for a hotel or short-term rental if your home’s unliveable. They often also cover debris removal and sometimes a cash allowance for essential items (clothes, toiletries). Don’t tough it out in your car if your policy would pay for a motel – make the claim. If you have comprehensive car insurance and your vehicle got flooded or burnt, ask the insurer if they provide a hire car or travel allowance. Some premium policies do.
Accessing your own money early: One controversial but sometimes necessary step – if you have retirement savings (superannuation) and you’re in dire straits, the government may allow early access to super on compassionate grounds for disasters. This was done during the 2020 bushfires for some folks. It’s a last resort (since it hits your future nest egg), but it’s there.
Community and charity aid: Never underestimate the power of community. Local charities, the Red Cross, Salvation Army, church groups, even GoFundMe campaigns – Australians are generous when disasters hit. There may be vouchers for groceries, free meals, clothing donations, school uniform replacements for kids, and so on. Accept the help. It can save you hundreds of dollars in out-of-pocket costs for basics. Down the track, neighbourhood recovery funds sometimes help with things like replacing appliances or tools lost – keep an ear out via community centers or Facebook groups dedicated to the disaster.
Finally, keep records of everything – money spent, aid received, time off work, etc. Not only will this help you manage your finances, but some of it may be claimable at tax time or form part of insurance or government claims. The Australian Taxation Office often gives leeway for disaster-affected people in filing returns and might allow deductions for some disaster-related expenses. They also usually activate a hotline to assist taxpayers in disaster zones (like helping reconstruct lost records). Don’t stress about paperwork immediately when you’re just trying to survive, but do keep receipts in a shoebox or digital folder. Future-you will thank present-you.
The Road to Financial Resilience
No one likes thinking about worst-case scenarios. It’s human nature to push it aside – “She’ll be right, that big fire/flood/storm won’t happen to me.” But as we’ve all seen, especially these past few years, it can happen to any of us. Look at what happened in LA. The difference between coming through a disaster with a path to recovery or being financially devastated often comes down to preparation and knowledge.
Start with the basics: stash some cash, back up your documents, have a plan for where you’d go and how you’d pay for it if you had to leave home. Talk to your household about these “just in case” plans – it’s like a fire drill for your finances. Yes, it’s a bit uncomfortable, but it’s empowering too.
We Aussies have an incredible spirit when things go pear-shaped. Pair that spirit with some solid financial prep, and you have a pretty good defence against whatever Mother Nature throws our way. Disasters will come – we can’t change that. But with the right strategies in place, we can make sure that when the sky clears, we’re not left financially broken, just a bit bruised but ready to rebuild. After all, money stuff is something we can control, and that’s a comforting thought when so much else is out of our hands.
Sources
- abc.net.au, afr.com, ausbanking.org.au, ehar.hpw.qld.gov.au, qld.gov.au, resilientlismore.org.au, servicesaustralia.gov.au, theguardian.com, thriving.org.au
