The Australian Treasury has estimated that natural disasters will result in a decline of $2.2 billion in economic activity for the year 2025, following the effects of Cyclone Alfred and widespread flooding across New South Wales (NSW) and Queensland.

Preliminary data for the March quarter indicate that retail trade and household spending have been significantly affected by these disasters.

The $2.2 billion assessment is derived from an initial evaluation conducted soon after the disasters.

It accounts primarily for immediate losses in economic activity that are expected to be reflected in the March quarter National Accounts report, scheduled for release on Wednesday.

Treasurer Jim Chalmers emphasized the government's commitment to supporting the recovery and rebuilding of impacted communities.

He acknowledged the dual importance of human and economic impacts, stating, "The human impacts matter to us most but the economic cost is very significant too."

Retail trade in Queensland exhibited a decline of 0.3 percent in February and 0.4 percent in March, indicating potential shifts in consumer behavior in response to the disasters.

Additionally, data from the Australian Bureau of Statistics indicated that household spending remained flat in the March quarter, with a noted 0.2 percent decrease in Queensland contributing to this stagnation.

The flooding in New South Wales during late May resulted in approximately 10,000 homes and businesses either damaged or destroyed.

The Insurance Council of Australia has reported over 6,000 insurance claims related to the flooding.

Cyclone Alfred, which made landfall on Moreton Island in early March, further exacerbated challenges for communities in southeast Queensland and northern New South Wales by causing significant flooding and damage.

In late March and early April, prolonged rainfall inundated an extensive area of central and southwest Queensland, covering about one million square kilometers.

Over the period from January to May, the government's Disaster Assist platform has identified 27 separate natural disasters within Australia, encompassing events such as flooding, storms, cyclones, and bushfires.

Opposition leader Sussan Ley is scheduled to visit flood-affected areas on the mid-north coast, alongside local members of parliament, to assess the situation and listen to community concerns.

Emergency Management Minister Kristy McBain has stated that the government intends to enhance resilience and preparedness measures, including the Disaster Ready Fund initiative which will allocate an additional $200 million for the fiscal year 2025-26. McBain further noted her commitment to provide prompt support to affected areas, affirming that multiple disaster payments have already been activated in collaboration with New South Wales local governments and that ongoing dialogues with small businesses and primary producers are underway to address their specific needs.