Flooding due to various causes, now accounts for the largest share of a growing natural disaster damages bill for Australia  and the number and intensity of extreme rainfall events is predicted to increase for many parts of the country . This trend and the current budgetary constraints, places Australia at a crossroads in disaster management policy and funding over the next couple of years. Recent developments could signal a re-interpretation of the National Strategy for Disaster Resilience and the scope of the reforms to be carried out under its imprimatur.  This presentation will identify some key areas of Australian government policy, with particular relevance to flooding, that are likely to have implications for how Australia positions itself for dealing with natural disasters in the future.