The Auditor-General of New South Wales has published a report evaluating the state’s Resilient Homes and Resilient Lands initiatives. These disaster recovery programs, which total $980 million, were introduced in response to the catastrophic floods that impacted northern NSW in 2022.
This audit examines whether the NSW Reconstruction Authority is successfully managing these programs to fulfill their intended goals. According to the audit, which highlights significant shortcomings, Australia’s most costly disaster recovery effort has yet to produce a single home or residential lot over more than three and a half years since its inception.
The floods in 2022 rendered 4,055 properties uninhabitable, while an additional 10,849 suffered damage. Despite the promise of 4,382 homes or lots through the Resilient Homes and Resilient Lands programs, no deliveries had been made by March 31 of this year. The Auditor-General expressed concerns that the Reconstruction Authority’s capability to provide land within the projected five-year timeline is “at risk.”
The report noted that the Resilient Lands program has not yet succeeded in assisting flood-affected residents in the Northern Rivers region. Launched in October 2022 and hailed by Prime Minister Anthony Albanese as “the biggest agreement of its kind” in response to a significant disaster, the programs have been marred by issues from their outset.
Initially, there were plans for 6,000 homes to qualify for buy-back, elevation, or retrofitting, but this figure was subsequently reduced to 2,000 by June 2023. The report indicated that the Reconstruction Authority is unlikely to reach its original target for the buy-back initiative. Initially revised to 1,345 homes when the Resilient Homes budget increased to $880 million in December 2024, this target was later scaled down to 1,000 by August 2025. As of March 31 this year, only 793 buy-backs have been completed.
The buy-back program has resulted in numerous vacant homes in Lismore, some of which have become occupied by squatters. Delay in the recovery process has raised concerns among flood survivors and community leaders, prompting questions about why New South Wales did not adopt more effective strategies similar to those implemented in Queensland.
The report identified ongoing delays within the Resilient Homes program due to unaddressed “key issues,” including the processes for relocating homes. Additional setbacks occurred due to alterations in how homeowners could access funds for raising or retrofitting their properties with flood-resistant materials, resulting in the first payments being disbursed 21 months post the catastrophic flooding of February 2022.
With over 800 homes in high-risk flood areas acquired by the government, communities like Lismore are left uncertain about their future. The report pointed out that the former Northern Rivers Reconstruction Corporation and the Reconstruction Authority did not take into account future planning for the vacant land created by the buy-back initiative, aside from rezoning these areas to prevent residential development.
The Auditor-General recommended that the Reconstruction Authority expedite the provision of sites for displaced flood victims by September of this year. Furthermore, by June next year, the authority should finalize and implement strategies for the vacant land resulting from the buy-back program while documenting lessons learned for future disaster planning.
In response, Reconstruction Authority CEO Kate Fitzgerald acknowledged the report’s findings and committed to addressing its recommendations. She recognized that essential aspects of planning, governance, and execution for the Resilient Homes and Resilient Lands programs were not adequately developed prior to their launch in 2022.
“Both programs were initiated amid an unprecedented disaster recovery effort, with an urgent need to assist communities severely impacted by floods,” Fitzgerald stated. “While this urgency allowed for swift action, it also limited thorough initial planning and led to various implementation challenges. As outlined by both parliamentary and independent inquiries, the 2022 floods tested our state’s capabilities, and we have continued to evolve and learn since those events.”
