The costs are being passed onto ordinary Australian households and businesses through skyrocketing insurance premiums. Emergency response, recovery and reconstruction costs are also paid through our taxes.
The one group paying none of the costs are the giant fossil fuel exporters who are causing the problem in the first place.
The Australia Institute has proposed climate damage compensation levy on fossil fuel exports to help take the burden off Australian households and businesses.
Major floods in eastern Australia pushed insured losses in 2022 to a record $7 billion, almost double previous records. Perhaps more alarmingly, since 2013, insured losses in each year have exceeded the combined losses of the five years from 2000 to 2004.
Between 2022 and 2023, the average home insurance premium in Australia rose by 14%, the biggest rise in a decade. As The Australia Institute revealed last week, around one-in-five households are now either uninsured or underinsured.
"If you cause a fire or flood at your neighbour's house, you pay for the damage. That's what should happen here," said Mark Ogge, Principal Advisor at The Australia Institute.
"Ordinary households and businesses are paying the cost of floods and fires caused by giant global energy companies. It's time we made them pay instead of us.
"A drop in the ocean of their massive profits would make a huge difference to Australian households and businesses reeling after the QLD floods.
"These companies often pay very little tax or royalties for Australia's resources. They send their huge profits out of the country to foreign owners. The least they could do is chip in to help Australians suffering as a result of their shameful behaviour.
"If we don't make them pay, we'll all pay."
