The total costs of natural disasters in Australia are forecast to more than double to $39 billion per year by 2050, according to a new report.

The Australian Business Roundtable for Disaster Resilience and Safer Communities report, Building Resilience to Natural Disasters in our States and Territories, examines the costs of natural disasters in each state and territory over the last decade and the estimated costs to 2050.

Prepared by Deloitte Access Economics, the report found the total economic cost of natural disasters in Australia over the 10 years to 2016 averaged $18.2 billion per year, equivalent to 1.2% of average GDP.  

In real terms, the total economic cost of natural disasters is forecast to grow by 3.4% per year, double by 2038 and by 2050 reach $39 billion per year in real terms.

More than nine million Australians have been impacted by a natural disaster or extreme weather event during the past 30 years.

The report outlines that each state and territory faces different natural hazards that impact the total cost of natural disasters in their jurisdiction.

For instance, during the past decade, Queensland has borne the brunt of natural disaster costs in Australia, with natural disaster events in the state comprising 60% of the nation’s total costs.

The report makes recommendations on how states can use their existing areas of responsibility to address the current barriers to building resilience.

The role of state, territory and local governments is also examined, and how they can effectively build resilience in communities, along with other jurisdictions, businesses and not-for-profit organisations.

“We all have a role in ensuring that we are as best prepared as we can be to manage and minimise the impact of natural disasters, led by all levels of government in collaboration with communities, businesses and the not-for-profit sector,” IAG Managing Director and CEO Peter Harmer said.

“State and territory governments play a major role in how a community responds to natural disasters. As well as emergency management and disaster recovery, they influence prevention and preparedness through data collection and provision, infrastructure and land use planning, building codes and community initiatives. They are critical to developing coordinated strategies for disaster mitigation and building resilience in communities.”

Read the full report here.