Northern rivers to be offered Fed-NSW $800m voluntary home buyback program

The NSW government had earlier flagged it would fund the buy-back of properties, while the Treasurer Jim Chalmers had also indicated that the Albanese government would also be willing to financially assist further.

With northern NSW reeling from multiple devastating flood events, the Prime Minister and Premier are set to tour Lismore to meet with flood-affected residents.

Mr Albanese said the two governments are acting together under the "Northern Rivers Resilient Homes Program" to make communities safer during future flood events

"We know that disasters are expected to become more frequent, and more severe due to climate change, and that's why we're working with the NSW Government to develop practical solutions to protect lives and livelihoods," he said in a statement.

"We know this repeated, relentless flooding can be emotionally and financially draining and we want communities to know we will be there to support them now, and as they recover."

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The new Commonwealth and NSW funded buyback scheme will be offered to residential homeowners impacted in the February-March 2022 floods, in the seven Local Government Areas of Ballina, Byron, Clarence Valley, Kyogle, Lismore, Richmond Valley and Tweed. It is not available for buildings primarily used for business purposes.

Under the program, the homeowner would receive a payment for the purchase of the land and house based on a valued amount. Buy backs will include insured and uninsured homes and any insurance settlements will be deducted from contract price.

The buyback program will target Northern Rivers residents located in areas where "major flooding would pose a catastrophic risk to life".

Where flood risk can be reduced by better building standards, the program will provide financial assistance of up to $100,000 for house raising or up to $50,000 for retrofitting homes.

"I saw first-hand the devastation extreme flooding caused across the Northern Rivers and I hope this program provides relief for so many residents who have suffered for too long," Mr Perrottet said in a statement.

"We are stepping up to provide options for residents to move out of harm's way and protect themselves and their families but we cannot continue to build back as we have in the past."

As well, the NSW government will provide $100 million to acquire land and open up new flood safe locations for future development. The Northern Rivers Reconstruction Corporation has started looking for suitable parcels of land.