Disaster Ready Fund - Round 2 FAQs

On 7 September 2022, the Australian Government announced their flagship disaster resilience and risk reduction initiative, committing $1 billion to be made available nationally through the DRF over five years, from 1 July 2023 to 30 June 2028.

The DRF provides investment in disaster mitigation across infrastructure and systemic disaster risk reduction projects, to address any, or multiple, natural hazards including extreme weather events and geological hazards.

Only Australian state and territory governments are eligible to apply to the DRF and the NSW Reconstruction Authority (RA) is the jurisdictional lead agency and ‘applicant’ on behalf of NSW.

The DRF supports projects that:

• increase the understanding of natural hazard disaster impacts, as a first step towards reducing disaster impacts in the future; 
• increase the resilience, adaptive capacity and/or preparedness of governments, community service organisations and affected communities to minimise the potential impact of natural hazards and avert disasters; and
• reduce the exposure to risk, harm and/or severity of a natural hazard’s impacts, including reducing the recovery burden for governments, cohorts at disproportionate disaster risk, and/or affected communities.

The Final Proposal stage for Round 2 opened on 22 January 2024 and closed 20 March 2024.  

On 28 August 2024, the Australian Government announced the NSW projects funded under the Disaster Ready Fund Round 2. A list of funded NSW projects can be found on the National Emergency Management website.

Yes, the RA has provided written advice to all successful proponents of recommended projects that were submitted under the NSW Application for Round 2. The written advice was provided to the contact person listed in the project proposal. All proponents of funded projects are required to provide written acceptance of the funding offer. 

As the Australian Government conducted the final assessment and is the decision maker of successful Round 2 projects, RA is unable to provide you with feedback on individual submissions. If the Australian Government’s Panel requests for specific feedback to be provided to project/s RA will do so. 

Yes. A Funding Agreement outlining the terms and conditions of this funding must be established. This will need to be signed by an office bearer authorised to enter into this Agreement on behalf of your organisation. 

An Implementation Plan for the project must be submitted to RA and approved by the Australian Government for approval within three months of execution of the agreement and the RA will work with proponents to develop this Plan. 

The RA will be in contact with your organisation in the coming weeks to discuss next steps, requirements, and the development of a Funding Agreement. 

The RA encourages you to consider preparing an application for DRF Round 3. Please take into consideration any feedback the RA provided you with following the NSW Assessment process at the EOI and Final Application stage. 

The Australian Government is expected to announce Round 3 of the Disaster Ready Fund in late 2024. The RA will provide a communication update once this advice is received from the Australian Government.
 
To keep abreast of updates regarding Round 3, please refer to the National Emergency Management website.   

If there are any changes to the project contact included in your Round 2 submission, please contact drfnsw@reconstruction.nsw.gov.au in the first instance. 

The Disaster Ready Fund program objectives and assessment criteria may differ between each funding round. The RA will seek to provide as much advance warning as possible regarding any changes for Round 3. 

The rationale for conducting the two-stage process, prior to the Commonwealth Round 2 DRF Guidelines being published, was to increase overall efficiency of effort for NSW applicants, through early selection of project concepts that are most aligned to the DRF objectives. The NSW EOI was a mandatory stage of the application process in NSW. Only successful EOI applicants were able to submit a final application to Round 2, which opened on 22 January 2024 and closed on 20 March 2024.

The NSW Reconstruction Authority (RA) notified applicants with successful EOIs of the process to submit a final proposal. 

Final proposal submissions opened on 22 January 2024 and closed on 20 March 2024.

The NSW EOI process set specific eligibility criteria for projects to meet, this can be found in the NSW EOI Guidance (PDF 301.98KB) . Following on from the EOI process, suitable applicants were requested to ensure no significant changes were made from the EOI submitted to Final Proposal stage, unless addressing EOI feedback and/or Project Conditions.   

For the definitions grey infrastructure is outlined in the DRF Round 2 Guidelines Glossary, Section 13 (page 36). 

For the purposes of the DRF, grey infrastructure involves engineered assets that reduce the risk of natural hazards for a particular community or communities. This includes, for example, but is not limited to levies or cyclone shelters. 

The definitions of green-blue infrastructure and nature-based solutions are outlined in the DRF Round 2 Guidelines Glossary, Section 15 (page 35 and 37).

For the purposes of the DRF, green blue Infrastructure is infrastructure that reduces risk of hazards for a particular community or communities, by delivering a strategically planned network of natural and semi-natural areas with other environmental features designed and managed to deliver a wide range of ecosystem services. It incorporates green spaces (or blue if aquatic ecosystems are concerned) and other physical features in terrestrial (including coastal) and marine areas. This includes, for example but not limited to, mangrove reforestation, greenways along floodplains or nature planning for heat management. 

Nature-based solutions are actions to protect, sustainably manage and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits. In the context of the DRF, nature-based solutions refers to actions to protect, sustainably manage, conserve and restore natural or modified ecosystems to reduce disaster risk, with the aim to achieve sustainable and resilient development. 

Eligible natural hazard types can be found in the DRF Round 2 Guidelines in the ‘Project eligibility criteria’ section.  

Projects must target at least one Natural Hazard type/s:

Geological hazards, such as, but not limited to:

• Landslides (including avalanches, mudslides, sinkholes)
• Earthquakes
• Tsunamis

Extreme weather and climate-driven hazards, such as but not limited to:

• Bushfires (including wildfires)
• Heatwaves
• Tornados (including damaging wind incidents and dust storms)
• Storms (including severe thunderstorms, hailstorms and blizzards; East coast lows; geomagnetic solar storms (X or M Class))
• Cyclones
• Floods (including flash flooding)
• Coastal hazards (including coastal erosion, and coastal inundation; sea level change)
• Pollen storms

Note that drought is excluded as an eligible hazard type. The Australian Government’s Future DroughtFund provides $100 million each year to support initiatives that build drought resilience.

The maximum project term is three (3) years. 

An applicant based in another state or territory and/or with a multi-jurisdictional or national project is eligible to apply in the Final Proposal stage provided that:

• the multi-jurisdictional or national project has a significant NSW-based component, and;
• the applicant has been invited to submit a Final Proposal following on from the EOI process. 

The RA will collaborate with other jurisdictions regarding cross-jurisdictional applications submitted via other states. If an applicant intends to submit a cross-jurisdictional project via another state:

• they do not need to participate in the Final Proposal, and;
• the applicant may be required to seek support from the RA. Please refer to the application process of the Lead Agency submitting the project.

Universities that meet the eligibility criteria may submit a project. 

For-profit businesses were not eligible applicants solely or as the lead organisation in the NSW EOI. For-profit businesses may be listed as a project partner led by an eligible applicant.

Social enterprise entities with a certification through social Traders were eligible in the NSW EOI, in line with the ‘eligibility criteria’. 

Small organisations that meet the eligibility criteria were eligible to apply in the NSW EOI.

A consortium of organisations and/or groups were able to apply ensuring that the lead applicant met all applicant eligibility criteria. The RA encourages the consolidation of projects and, where feasible, under one project submission with a single management structure.

Yes, not-for-profits registered with ORIC were eligible to apply in line with the NSW EOI eligibility criteria.

The projects deemed suitable at EOI, to progress to final proposal, were assessed based on having met the screening criteria, including the funding amounts requested and co-contribution amounts. Any changes to waiver and co-contribution requests will be considered material changes. The NSW Panel will assess if the change fundamentally alters the EOI submission. Significant deviations from the EOI may preclude final proposals from inclusion to the NSW Application.

There was no limit on the number of EOI applications an eligible applicant could submit. The RA encourages the consolidation of projects where feasible under one project submission, with a single management structure.

The Application process for Final Proposals closed on 20 March 2024.

The NSW final proposal stage was invite-only. NSW final proposals were not accepted from projects that did not submit a successful NSW EOI. The RA had considered applications from organisations that missed the EOI in exceptional circumstances until 8 March 2024.

Late submissions will not be accepted unless RA is satisfied that the acceptance of a late submission would not compromise the integrity and competitiveness of the process. 

The RA had considered applications from organisations that missed the EOI in exceptional circumstances until 8 March 2024. The EOI process was communicated extensively via multiple channels. 

To fulfil probity requirements of transparency and fairness, projects must undergo the screening and determination process in line with the timeframes set by RA and the Commonwealth. 

Evidence required for projects involving construction is outlined in the final proposal application form.

In the EOI application, infrastructure projects needed to demonstrate land ownership or land-owner consent, as well as any other required regulatory approvals. 

The EOI screening criteria included all ‘Applicant eligibility criteria’ and ‘Project eligibility criteria and 'Additional inclusion screening’ specified in the NSW EOI Guidance (PDF 301.98KB).  

There is no defined allocation of funding to the two Streams.

In Round 2 of the DRF, the Australian Government has advised projects must align to the Investment Principles. The list of Investment Principles can be found in the ‘Investment Principals’ section on Page 9-10 in the DRF Round 2 Guidelines.   

The Final Proposal stage for Round 2 closed on 20 March 2024. NSW RA encourages you to consider preparing for an application in Round 3.

Questions on Round 1 submissions may be sent to drfnswround1@reconstruction.nsw.gov.au.

An applicant based in another state or territory was eligible to apply for funding under the NSW EOI process and/or request a NSW Lead Agency 25% co-contribution provided that:

• the multi-jurisdictional project has a significant NSW-based component, and;
• the applicant has been invited to submit a Final Proposal following on from the EOI process.

Section 13 on page 38 of the NEMA DRF Round 2 Guidelines define place-based as: Place-based approaches focus on addressing the problems of a particular location by leveraging existing programs and/or filling gaps in service delivery. Applicants must have meaningfully consulted with relevant local governments and First Nations communities before submitting any project with a place-based focus.

Place-based projects are defined by a specific location/s and focus on practical on-the-ground impacts in one or more locations. They generally involve collaboration with critical stakeholders essential to the success of the project. Infrastructure and non-infrastructure projects can be place-based projects. 

Place-based projects must demonstrate robust consultation with relevant impacted stakeholders including First Nations peoples and communities. This may include projects with practical on-ground impacts in one or more local government areas, where those entities are impacted (e.g., infrastructure projects). 

While an infrastructure project with statewide impacts or construction works across multiple regions may not meet the definition of place-based, it would still require stakeholder consultation. 

Please refer to the DRF Round 2 - First Nation Australians Consultation Requirements Factsheet

Further information on consultation with First Nations peoples or communities can be sought through the NSW Local Aboriginal Land Council

If robust consultation is not demonstrated, the application submission may be excluded from the process at the discretion of the RA.

In the Final Application form, applicants were required to reference consultation with local government(s) and other stakeholders where relevant.

Applicants were required to supply a letter of support in the Final Application form where support from key stakeholders including local government, delivery partners and First Nations communities, is critical to the delivery of the project. For applicants that received a project condition from the NSW EOI Panel requiring a letter of support in their Final Application, this needed to be supplied in their proposal.

The DRF Round 2 Guidelines state that projects must target at least one eligible category in Stream One or Stream Two, as part of the Project Eligibility Criteria.

Please note that all eligibility criteria are outlined in the DRF Round 2 Guidelines. 

For the purposes of the DRF, infrastructure projects generally involve construction and on-ground works to be considered an infrastructure project. Projects that fall into the grey infrastructure, green blue infrastructure and/or hazard monitoring infrastructure refer to projects that involve construction and on-ground works relevant to each category. Please see the definitions of grey infrastructure and green-blue infrastructure included in these FAQs for further explanation on these types of infrastructure. 

Infrastructure projects that involve investigation, planning and design to resolve emerging risks (i.e. condition surveys, infrastructure design, data collection/analysis) would fall into the Infrastructure category of ‘business case development for future infrastructure (including investigation, modelling, concept and detailed design activities)’. Applicants may select more than one category within the selected Stream if applicable – e.g. the project involves development of a business case and construction.

On 23 February 2024, the RA published the State Disaster Mitigation Plan (SDMP). The full details can be found here: State Disaster Mitigation Plan. This plan supports the NSW Government’s commitment to making our communities safer, more resilient and better prepared to face the challenges of disasters caused by natural hazards such as floods, bush fires, storms and cyclones and coastal erosion and inundation.

Section 7.2 on page 20 of the DRF Round 2 Guidelines refer to the requirement for projects to be in ‘alignment with existing plans or development of plans’. This means projects must align with existing national, state, territory, and local hazard mitigation and resilience plans, or provide evidence that planning process is underway. Where plans do not exist or are in development, proposals could support the development of those plans. With the release of the SDMP, applicants were encouraged to refer to the State Disaster Mitigation Plan in the preparation of their Final Proposal application.

For any questions relating to the State Disaster Mitigation Plan (SDMP), please email sdmp@reconstruction.nsw.gov.au

Work which is expected to support DAP development were considered eligible. However, please note the DAP guidelines will not be available until mid-2024, which may limit the specificity of work possible via Round 2 of the DRF. It was suggested that high priorities include building the requisite capacities and capabilities for the development of DAPs and ensuring there is adequate and granular understanding of disaster risk in your region or LGA. This could include individual hazard studies, demographics and knowing your community.

Depending on the type of project, this may best align with the Commonwealth’s Systemic Risk Reduction categories of:

• Projects that deliver inclusive plans at the household, community, regional and state levels to mitigate identified risks and impacts
• Strengthening decision making by enhancing governance networks and communities of practice, including the development and/or alignment of resilience and risk reduction strategies
• Adaptation projects that improve land use planning and development practice projects, including but not limited to the preparation of regional or local plans and updating land use planning instruments and building codes

The DRF Round 2 Guidelines acknowledges that disaster risk reduction and resilience strategies in NSW are evolving and new plans, such as the Disaster Adaptation Plans (DAPs) are in development. Work which is expected to support and accelerate the development of state endorsed plans (e.g. DAPs) will also be viewed favourably. This could include ensuring the requisite capabilities, capacities and data are in place to develop effective plans. RA will work closely with successful applicants to also ensure alignment to priorities of the Disaster Adaptation Plan as it becomes available.

For any questions relating to the Disaster Adaptation Plans (DAPs), please email dap@reconstruction.nsw.gov.au

Upgrade of community owned facilities could be applied for, provided that the project addressed all eligibility criteria specified in the DRF Round 2 Guidelines. Projects must also align with eligible expenditure items listed in the DRF Round 2 Guidelines. All project expenditure must be incurred on eligible expenditure items that are directly attributed to the delivery of the project. This may include “upgrading of existing materials and assets so long as the upgrades meet the intent of the DRF Objectives” and “construction and/or procurement of materials, including supply costs, in order to deliver the project”.

Applicants needed to review the DRF Round 2 Guidelines and determine which Stream and category their project best aligns with.

Social projects that build the capacity and capability of businesses, community sector organisations and/or at-risk communities to improve their preparedness and resilience to the impacts of future disasters would best align with the Systemic Risk Reduction Stream category.

Projects that involve engineered assets that reduce the risk of hazards for a particular community or communities would best align with the Infrastructure Stream (investment in grey infrastructure category). 

In Section 13, page 38 of the DRF Round 2 Guidelines Glossary, NEMA has defined ‘Social Infrastructure’ as: Social infrastructure is comprised of the facilities, spaces, services and networks that support the quality of life and wellbeing of communities.

‘Investment in social infrastructure (including nature-based solutions)’ is a project activity type under the ‘Infrastructure’ Stream. In the Final Proposal application form, social infrastructure projects are to select ‘Infrastructure’ as the DRF Stream, then select ‘Investment in social infrastructure (including nature-based solutions)’ as the primary project activity type.

Due to the varied projects that may be submitted under the DRF, the evidence of disaster risk will differ for each project. The EOI Support Session Slides (PDF 3.7MB) provide examples of sources of risk data and resources to assist projects in taking a ‘risk-informed’ approach (slides 23 and 24). The applicant must decide on the most relevant evidence of disaster risk to provide, which may include (but is not limited to) risk assessment, data analysis, modelling, technical report, project report or other relevant documentation that provides evidence of disaster risk that the project will address.

For the purposes of the NSW EOI, a social enterprise is an entity with certification through Social Traders and registered for GST (unincorporated Organisations are not eligible) with a project that is not intended for commercial gain. 

The word limit between the NSW EOI application form and the Final Proposal has increased. Applicants are encouraged to formulate their written responses comprehensively by providing key information and evidence where relevant. 

For projects with project conditions as requested by the Panel, the relevant applicants have been advised in the letter sent in January 2024 notifying the outcome of the EOI.

NEMA requires a complete list of all site addresses for each project to be entered in the Final Proposal form.

Applicants can enter a nearby property address. For the discrete community, the main address or the LALC building address can be supplied. Please refer to the application form in Smarty Grants for more instructional text. 

The mandatory NSW EOI process and final application stage have now closed. Suitable EOI Applicants were notified on 19 January 2024 of the outcome and had until 20 March 2024 to complete a final application. 

A list of funded Round 2 NSW projects can be found on the National Emergency Management website.

No, only Australian state and territory government lead agencies are eligible to apply for funding via an overarching state Application to the Australian Government comprising of all project proposals.

The RA is the jurisdictional lead agency and ‘applicant’ on behalf of NSW. The RA conducted a mandatory EOI process, followed by a Final Proposal process that closed on 20 March 2024.  The Australian Government is the final decision maker on the assessment of projects and awarding of funding. ​

A total of 27 projects have received funding as part of Round 2 and a full list of projects can be found on the National Emergency Management website.

Co-contribution costs can include, but are not limited to: 

• a direct (cash) funding contribution provided at the time of project commencement; 
• funds the Project has already invested in a program or project on or any time after 1 July 2020 (only where the Commonwealth’s DRF contribution is expected to extend or enhance that program or project subject to alignment with the DRF Objectives) 
• any costs associated with the project’s delivery, for example construction or project delivery; and 
• other in-kind costs, such as wages directly attributable to the delivery of the project, and/ or supplies, materials, and specific equipment required to execute the project. 

Note that Commonwealth funding from any source (including historical) cannot be used to cover the co-contribution, either fully or in-part. 

Applicants are encouraged to consider eligible in-kind co-contributions that could accumulate to meet the 50% co-contribution, including:

• funds (cash or in-kind) the Project has already invested in a program or project on or any time after 1 July 2020 (only where the Commonwealth’s DRF contribution is expected to extend or enhance that program or project subject to alignment with the DRF Objectives)
• any costs associated with the project’s delivery, for example construction or project delivery; and
• other in-kind costs, such as wages directly attributable to the delivery of the project, and/ or supplies, materials, and specific equipment required to execute the project.

In NSW, applicants could select from the option to request a 25% State co-contribution or request a Commonwealth Government waiver or co-contribution reduction (in exceptional circumstances).

While NSW applicants may apply for the 25% State co-contribution, there is no guarantee that this request will be approved and any requests that are approved will be at RA’s complete discretion. Requests for Commonwealth Government waivers or co-contribution reductions will only be considered in exceptional circumstances at the discretion of the Commonwealth.

Applicants could request a waiver or partial-waiver (co-contribution reduction) from the Commonwealth Government, in the application form.

Requests for waivers or co-contribution reductions will only be considered in exceptional circumstances at the discretion of the Commonwealth.

Further information regarding the Commonwealth Government co-contribution waivers can be found in the DRF Round 2 Guidelines. 

NSW state funding or other funding source approved for a project after 1 July 2020 is eligible as a co-contribution source (only where the Commonwealth’s contribution from the DRF is expected to extend or enhance that program or project subject to alignment with the DRF Objectives). If the original source of this State funding is grant funding, please ensure that the guidelines for the grant funding allow it to be used as a co-contribution.

Some applicants may need to seek formal advice from NSW Treasury regarding suitability of using NSW Treasury funding for co-contributions where relevant. Please note Commonwealth funding sources are not eligible co-contribution sources for the DRF.

Applicants are permitted to provide an in-principle co-contribution (i.e. a co-contribution pending formal approval) when submitting a project, while the co-contribution is being approved to secure the formal (actual) co-contribution. Applicants must be able to commit to the formal co-contribution prior to the signing of Funding Agreements. If an in-principle co-contribution does not result in the actual co-contribution prior to the signing of Funding Agreements, the offer for funding will be withdrawn. Applicants are advised to be clear when and how co-contributions will be available to provide the Commonwealth Panel assurance that the in-principle co-contribution will eventuate.

Yes. Eligible lead applicants that are awarded DRF funding by the Commonwealth may establish sub-contracting arrangements with project partners under the project governance structure, including for any co-contribution arrangements provided by partners.

Eligible expenditure items are listed in ‘section 4.1 ‘Eligible expenditure' (page 14 – 15) of the DRF Round 2 Guidelines.

Ineligible expenditure items are listed in section 4.2 ‘Ineligible project expenditure’ (page 15) of the DRF Round 2 Guidelines. 

Staff salaries and on-costs that are directly attributed to the provision of the project are eligible expenditure items. This includes staff, contractor and consultancy salaries and on-costs, including administration costs such as training, utilities and travel, that are directly attributed to the provision of the project. 

Capital purchases are considered to be eligible expenditure if they are for the purpose of direct project delivery. Where a capital purchase would only be used occasionally or indirectly to deliver the project, the capital purchase would not be considered as an eligible expenditure item. Applicants should consider whether the capital item is more cost effective to hire and request funding accordingly. 

NEMA has not provided specific guidance on this. RA advises volunteer hours can be costed at the relevant industry rate.

The DRF Round 2 Guidelinesspecifies that co-contributions for funds the project has already invested in a program or project may be on or any time after 1 July 2020, and only where the Commonwealth’s contribution from the DRF is expected to extend or enhance that program or project subject to alignment with the DRF Objectives. 

The development of a business case or preliminary work directly related to the delivery of the project may be included as part of the co-contribution. Applicants may be required to provide additional information to evidence the previous work and how it is related to the direct delivery of the project. 

Repair, recovery or relief works will not be funded as part of the DRF. The DRF is a disaster resilience and risk reduction initiative that was established to reduce the impacts of future disasters predicated by natural hazards. The DRF Round 2 Guidelines specifies the funding Streams and categories that projects must align to (at least one category within Stream 1 or Stream 2), which does not include repair, recovery or relief works.

Repair, recovery and relief works as a guide would include works covered through the Disaster Recovery Funding Arrangements. This may include the following examples: the repair or restoration of infrastructure and/or assets, materials or equipment damaged by natural hazard/s; recovery and relief efforts managing the disruptions and changes caused by natural disaster impacts; emergency response works such as clean-up, aid, relief, community recovery work such as work with individuals or families experiencing personal hardship or distress due to a recent natural disaster, or essential services post a natural hazard event; and, works associated with past natural hazards that does not relate to preparedness, resilience and/or risk reduction for future natural hazard impacts.

RA can also submit a project proposal for inclusion in the NSW Application. As RA is the Lead Agency for the NSW Application, probity measures have been implemented to ensure that there is a complete separation between RA staff who will be undertaking the assessment and screening, and the individuals who will be involved in the development of the project proposal submission.

Technical experts and an executive panel (including external members) will also conduct screening, scoring and a recommendation of projects to be invited to submit final proposals. Separation of roles will be maintained throughout these processes, whereby any staff involved in an RA application will not be involved in the screening or recommendation of that project. Established probity protocols will be adhered to including Confidentiality and Conflict of Interest protocols. The DRF Probity Advisor (refer below) will also be providing oversight of the process to ensure this separation is maintained.  

The Commonwealth Government are the final decision maker in awarding funding. The Commonwealth assessment process and criteria is detailed in the DRF Round 2 Guidelines.

The NSW Reconstruction Authority has appointed O’Connor Marsden & Associates as the probity advisor for the NSW application process.

Should you have any concerns regarding the probity or integrity of the NSW application please email the RA in the first instance at: drfnsw@reconstruction.nsw.gov.au.

For projects that were invited to the Final Application stage, support sessions were held in February 2024 to help applicants understand the application form requirements and how to submit a high-quality application.

A third-party provider, Orange Compass, held Coaching Sessions and Final Application reviews in early March 2024. Due to limited availability, the RA had established a set of criteria to identify applicants requiring the additional support.

Coaching Sessions were offered to:

• Applicants with project conditions as advised by the Panel
• First Nations led projects or projects targeting First Nation Communities, and
• NGOs and Local Councils identified as having additional needs

Final Application reviews have been offered to:

• Applications with project conditions, and
• Oversubscribed applicants from the Coaching Sessions

Any vacancies in the Coaching Sessions and Final Application reviews  were offered by RA to applicants on a first come-first served basis.

For probity reasons, RA were not privy to any details of the Coaching Sessions and Final Application reviews.

Frequently asked questions will be updated regularly to provide all applicants with the same information.

Please note that the NSW DRF Team cannot provide advice on any project proposals other than information that is publicly available.

Please refer to the ‘SmartyGrants for Applicant Users’ instructions under ‘Document for download’.