Alarmed outback Queensland mayors have travelled to Canberra in a bid to stop the commonwealth's disaster funding revamp as the state government also raised concerns.
Northwest councils fear they will be left to pick up a tab worth billions as Queensland pumps money into 2032 Olympic Games infrastructure.
Under the commonwealth's new model, funding to disaster-hit communities will be split 50-50 between the federal, state and territory governments.
Previously it had been 64-36 with the lion's share covered by the commonwealth.
"We have a Queensland government with an Olympics coming up and we are concerned there are no guarantees the state will contribute additional funds," Burke Shire Mayor Ernie Camp said.
"Councils will ultimately wear this funding shortfall."
He said his sparsely populated shire only generated $3.5 million in rates compared to 2023 flooding damage which cost more than $200 million.
He was part of a Gulf council contingent that lobbied Canberra over the funding change as the region counted the cost of recent disasters.
Cyclone Narelle left a trail of destruction across the far north in March, sparking a push for funding to build emergency shelters and dedicated disaster management centres.
Months earlier Cyclone Koji devastated livestock and isolated northwest communities, extensively damaging roads.
Carpentaria Shire Council chief executive Anne Andrews said her region's annual road damage bill alone was routinely up to $60 million.
"We are the road builders in our shire and we use local contractors and labour hire which allows our First Nations and local community to be gainfully employed, live and work on Country," she said.
Mr Camp pointed to an independent review which recommended against increasing state contributions to disaster relief funding.
The review said flexible funding arrangements should be considered for remote First Nations communities to support community self-determination towards disaster preparedness, risk reduction and resilience.
Queensland Disaster Recovery Minister Ann Leahy was very concerned the disaster funding change would impact a council's response and recovery.
"Councils won't be funded under those proposed arrangements to set up evacuation centres, so it really will start to limit what volunteers do," she told reporters on Tuesday.
"Or it will place greater imposts and cost shifts onto volunteer organisations, which is really very disappointing.
"Because we are the most disaster‑prone state ... those proposed disaster cuts will impact on insurance, it will impact on councils and it will impact on volunteers."
Federal Emergency Management Minister Kristy McBain said no council would be worse off under the new funding changes sparked by Independent Review of Commonwealth Disaster Funding recommendations.
"We are currently consulting with the states and territories and councils on our proposed new Disaster Recovery Funding Framework," she said in a statement.
"We've heard through the review and through years of comprehensive engagement with councils, state and territory governments that the current system needs to be fixed.
"Our reforms will make the process simpler and faster for councils to navigate and no council should be worse off."
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