RACT 2025 Election Advocacy Statement

Building Community Preparedness for a Changing Climate

The past three years have seen significant increases in insurance costs, which is impacting Tasmanian households. As an organisation owned by our 220,000 members, we know how much the rising cost of insurance hurts.

Over the past year, RACT has been more actively engaging with experts, businesses and governments to identify solutions to address these underlying cost drivers.  

We urgently need to tackle these underlying drivers, including increasing building, construction costs, government fees and charges, and preparedness for more frequent natural disasters. Extreme weather and disaster events are adversely impacting Tasmania.

• The past 12 years have been the most costly and destructive for Tasmanians since 1967, with more than $2 billion of community losses caused by adverse events such as the Dunalley bushfires and floods in Latrobe, Hobart and Launceston. 

• The Northern Tasmania storms in September last year were Tasmania’s most damaging since May 2018, resulting in $50m of damage.

• The frequency and severity of extreme weather events are expected to increase by more than 40% statewide by 2050 and beyond. 

• Analysis indicates that every dollar invested in proactive resilience action saves four dollars in future disaster costs.

• Tasmania is distinct from other Australian States and Territories, with bushfire making up 75% of Tasmania’s natural hazard risk. This makes it one of the world’s most fir-exposed places.

• Tasmania’s smaller size means that natural disasters have a greater proportional economic impact. For example, a bushfire that results in a $2.9 billion of damage to the community, represents 7.6% of Tasmania’s Gross State Product. In terms of relative impact, this is 4.7 times more than the next highest state in Australia (Victoria with a likely $8.8b economic impact).

We urgently need to build community resilience. What’s resilience? Think of it as disaster preparedness. Insurance is universally recognised as a critical part of community and individual resilience, and provides greater security, and quicker recovery following a major disaster. These are complex challenges that no organisation, government, or community can solve alone. Supporting Tasmanians in this changing environment requires us all to bring expertise to the table and work together. 

Development of coordinated community resilience strategy program

RACT's 2025 survey of 17,000 members showed that the majority want more assistance to be better prepared for natural disasters. Tasmanians are concerned about the preparedness of their community and the security of their homes in the face of increasingly frequent fires, floods and storms.

Tasmania possesses world-leading expertise in climate resilience through our research institutions such as the Fire Centre Bushfire Research Hub, government departments, and practical fire management capabilities.

RACT advocates for:

• Collaborative cross-sector development and delivery of evidence-based community programs that inform, support and empower Tasmanians to prepare for disaster scenarios. 

• Support and investment in Tasmanian-specific fire research to inform community and society actions.

Putting resilience at the heart of planning.

It is essential that Tasmania invests in the planning and adaptation measures to improve our state's community disaster preparation.

RACT advocates for:

• A review of land use and planning to better protect at-risk homes and ensure planning incorporates risk and disaster mitigation.

• A halt to construction in high-risk areas, flood and bushfire prone zones.

• Targeted support for community organisations and individuals to reduce risks by preparing for extreme weather hazards.

Review taxation of insurance

Tasmania, like all States and Territories (excluding the ACT), charges Stamp Duty on insurance products as a percentage. Of the cost of Tasmanians’ insurance, 10% constitutes Stamp Duty, on top of 10% for GST. As premiums have risen, these taxes have increased significantly too and constitute revenue that goes to government. In addition, Tasmanian businesses are charged a fire levy on their insurance, homeowners through their council rates and motorists through their annual vehicle registration.  These additional fees increase the cost of insurance.  

RACT advocates for:

•  Engagement in productive, balanced taxation reform to achieve;

  • A reduction of the insurance taxation burden on Tasmanians to improve insurance affordability. This will strengthen community resilience and reduce the reliance on government support after a disaster.   

  • Funding resilience, emergency services and recovery measures.