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Environment, Local Government

Victorian tourist towns hit by fires, floods join national push for big polluters to pay climate costs

Climate Media Centre 3 mins read

28 October 2026

 

Photos and audio for radio news are available here


Surf Coast Shire Council is calling for a National Climate Compensation Fund, paid for by big polluters, to give its community the resources to recover from and prepare for floods, fires and storms made worse by climate change.

 

The council area, home to the nationally iconic Great Ocean Road, was hit hard by bushfires, and flash flooding in Lorne and the Cumberland River over summer 2025-26. Cars were washed away, people were stranded, and businesses inundated as rivers burst their banks. 

 

Becky McIntosh, the owner of Riverbank Cafe in Lorne, said:

 

“Watching the flash flood engulf my cafe in minutes was heartbreaking. After working so hard for our busiest season, seeing the devastation and losing income we rely on for the rest of the year has been incredibly stressful. It’s a stark reminder of how devastating extreme weather can be for small businesses, our livelihoods and our community.”

 

The costs of climate-driven disasters are now twelve times higher than twenty years ago, while Local Government revenue has grown only three times over the same period. A National Climate Compensation Fund would close that gap, giving councils reliable, dedicated funding to help communities thrive. 

 

Surf Coast Shire Councillor Phoebe Crockett, said:

 

“After a climate disaster event, it’s the council and the community who pick up the cleaning bill. After the floods our community came together, with neighbours helping neighbours clear mud from homes and businesses and get back on their feet. But that goodwill shouldn’t be the only safety net we have. We need the Federal Government to back communities like ours with real, ongoing funding, not leave ratepayers to carry the cost of a crisis we didn’t create.”

 

The council voted on the Climate Compensation Fund Advocacy (4.4) agenda item at its October 27 council meeting. It calls on the Federal Government to set up a National Climate Compensation Fund, and supports a levy on major coal, oil and gas corporations – whose pollution contributes to climate change – to help pay for disaster recovery, infrastructure repair and community resilience.

 

Surf Coast Shire Mayor Libby Stapleton, said:

 

“Last summer our community was hit by flash flooding and the bill for the clean-up and repairs to public infrastructure will run into the millions. Sea level rise, coastal erosion, floods, fires and heat are only going to put more pressure on our budget and our services. We’re calling on the Federal Government to set up a dedicated funding stream so councils like ours aren’t left picking up the tab for a crisis we didn’t cause.”

 

A survey of 68 Lorne businesses in March 2026 found 31 per cent had lost a month's worth of income over the summer period, and a further 47 per cent had lost at least one week's.

 

Anna McIldowie, who runs the Lorne Bowls Club In the Skies, said:

 

“As a seasonal tourist town, summer is our busiest time and we rely on it to make the rest of the year viable, but it’s also our fire and flood season. The bowlo’s on higher ground so we avoided the worst of the floods, but we still felt it with bookings lost and staff from nearby towns unable to get to work. We’ve seen events like Falls Festival cancelled because of extreme weather, and on catastrophic fire days I leave Lorne for Geelong with my sons so as not to be a burden. Other business owners and staff volunteer with the CFA and have to abandon their jobs to respond to fires or floods in our busiest season. Our local hospital is already stretched thin over January without fires and floods thrown into the mix. The whole area needs to adapt, but who is going to pay for it?”

 

Surf Coast Shire council also received a petition signed by 200 concerned community members calling for the Climate Compensation Fund. 

 

Jamie Thom Aireys, Inlet resident and member from Surf Coast Environment Group, said: 

 

“When bushfires, floods and storms hit, it's our community picking up the bill in higher insurance and food prices, damaged roads, and disaster clean-up. We congratulate our council for backing our 200 strong community petition and calling for a Climate Pollution Levy, so the corporations driving three-quarters of Australia's climate pollution pay their fair share, instead of leaving ratepayers to foot the bill.

 

The vote makes Surf Coast Shire the 15th council to back the Communities for Climate Compensation campaign, joining councils including City of Sydney, Tweed Shire, Hobart, Bass Coast and, most recently, Port Phillip.

 

The council will write to relevant Federal Ministers and local MPs outlining its support.

 

Photos and audio for radio news are available here

MEDIA CONTACT: Laura Corrigan | 0423 690 152 | [email protected]








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