The Productivity Commission will look at how relief and recovery money is spent in the aftermath of natural disasters.
The federal government wants to use disaster relief funding more effectively.
It has asked the Productivity Commission to look into how relief money is spent in the aftermath of cyclones, bushfires and the like.
Releasing the terms of reference on Monday, Justice Minister Michael Keenan said the human and economic costs of natural disasters are soaring.
The government needs to be proactive, not reactive, to future crises.
That may mean, for example, looking at whether destroyed roads will be rebuilt to the same standard.
However, the review will not consider cutting disaster relief funds.
“This is not about saving money. This is about making sure the money we do spend is being spent in the most effective way possible,” Mr Keenan told reporters.
The commission will deliver its report by the end of the year, with a draft due in September.
Queensland’s Community Recovery and Resilience Minister David Crisafulli didn’t want to speculate on whether the review would jeopardise the state’s 25/75 split with the federal government for funding natural disaster repairs.
But he said no government in the nation’s history has done more to mitigate against natural disasters than Queensland.
“As well as a betterment fund, to not just rebuild assets but replace them with stronger ones, we’ve embarked on flood mitigation projects across the state,” he said.
“This should be recognised and rewarded.”