The Federal Government has been criticised for holding back disaster relief money during a flooding emergency. 

High flood levels have devastated parts of Queensland and New South Wales in recent days, leading many to look to the Commonwealth for assistance. 

But the government has spent only a fraction of its $4.7 billion Emergency Response Fund on natural disaster preparedness since it was launched in 2019. Reports say more than $1.2 billion of funding is sitting in cash, while the rest has been invested in equities, debt securities, property and infrastructure investments. 

The fund allows up to $200 million a year to be spent on natural disasters, but only $150 million has been announced in funding initiatives over the last three years. The fund has gained over $800 million in interest over the same period - earning interest at an annual rate of more than 11 per cent.

The chairs of the Charities Crisis Cabinet have written to Prime Minister Scott Morrison, calling on him to provide greater support to charities dealing with natural disasters.

“Charities could be doing more to support their communities, but the lack of flexibility in critical program areas like Commonwealth-funded food support and emergency relief has meant that thousands of charities have been excluded,” Reverend Tim Costello and Adjunct Professor Susan Pascoe wrote.

“Greater flexibility and less centralised command and control approaches in the application of government support programs would enable charities to be more effective in responding to the needs of their communities.”

Emergency Management Minister Bridget McKenzie says $50 million going towards flood mitigation projects is enough.

“The emergency response fund was set up as a future fund to be used when all other sources of funding have been exhausted … it’s there for the future for communities – long after I’m the minister – to be able to exercise and use,” she told the ABC.

“We’re focused on getting people safe, making sure that they’re alive and have that immediate support, and then we have the long road to recovery.”