State governments must urgently overhaul their approach to land use planning to ensure no more homes are built without regard to risk on flood plains, according to numerous organisations representing planners, builders and insurers.

In response to the flood emergency of recent years, the Insurance Council of Australia (ICA), Master Builders Australia (MBA) and the Planning Institute of Australia (PIA), supported by the Australian Local Government Association (ALGA), convened the inaugural National Industry Roundtable: Land Use Planning and Resilience in late July 2023.

Around 60 experts from government, financial services, property, and community joined the discussion, which called on state and territory governments when thinking about future housing challenges, to urgently rethink planning rules so no more homes are built in high-risk flood-prone locations.

A communique from the three sponsoring organisations outlining recommendations for reform has been released and will be sent to planning ministers.

The roundtable heard that all Australians are bearing the costs of worsening extreme weather events, and these costs are increasing because of historic planning decisions.

Attendees agreed that without reform, population pressures and inadequate planning laws will see further development of flood-prone land putting lives at risk, costing taxpayers billions of dollars in recovery and remediation, and adding to an already strained insurance sector.