Cyclone Alfred's $1.2 Billion Cleanup Bill Strains Federal Budget

Treasurer Jim Chalmers warns of inflationary pressures and slowed economic growth as disaster costs mount.

The cleanup costs from ex-Tropical Cyclone Alfred are estimated at $1.2 billion, adding significant pressure to Australia's federal budget.
Treasurer Jim Chalmers stated the disaster will cut a quarter percentage point from economic growth and exacerbate inflation concerns.
The federal government’s disaster support spending is projected to rise from $11.6 billion to at least $13.5 billion in total provisions.
The economic impact comes ahead of next week's federal budget, which is expected to reflect further revenue shortfalls and increased deficits.
Calls for tax reform and productivity-boosting measures intensify as analysts warn of worsening fiscal challenges and declining living standards.