Insured fire victims left behind in two-tier clean-up policy

Member for Euroa Annabelle Cleeland MP has called on the Allan Labor Government to reverse its bushfire clean-up rules after fire-affected families were excluded from the state program because they held insurance.

Five weeks after the 2026 fires, properties across the electorate still contain burnt structures, contaminated debris and hazardous materials.

Under the Government’s $175 million recovery package, only uninsured or underinsured properties qualify for the coordinated clean-up. Insured residents must pay for debris removal from their own payouts before they can rebuild.

Ms Cleeland said the decision had created a two-tier recovery and marked the first time in more than a decade Victoria had not applied a universal clean-up following a major disaster.

“People who did the responsible thing and insured their homes are being left behind,” Ms Cleeland said.

“For over ten years, after fires and floods, clean-up was treated as a safety issue and handled universally. This is the first time the Government has walked away from that approach.”

“They’ve lost everything, and now they’re told to fund the clean-up before they can even start again. That strips rebuild money out of their settlement and delays recovery for entire communities.”

Residents have reported quotes of tens of thousands of dollars to remove sheds and debris, leading some to attempt clean-ups themselves.

“That is dangerous for families and an environmental risk when hazardous material is handled piecemeal. The physical scars stay in the landscape longer and recovery stalls.”

Ms Cleeland said the policy also created a moral hazard.

“You are effectively punished for being insured. That is not fair and it is not how emergency recovery should work.”

She called on the Allan Labor Government to restore a universal, coordinated clean-up for all fire-affected properties.

“A single program is faster, safer and gets people rebuilding sooner. Recovery should bring communities together, not divide them,” Ms Cleeland said.