Local council repair efforts in the wake of floods and bushfires will be fast-tracked following a string of catastrophic natural disasters.
Almost $1.8 billion in advanced payments will be paid to state governments in order for work to begin on works such as repairing roads, bridges and other public infrastructure damaged in recent years.
It is expected 332 local government areas across the country will be the beneficiaries of the funding.
Of the $1.8 billion that will be allocated early, $887 million will go to NSW, while $758 million will be funnelled to projects in Queensland.
Western Australia will receive almost $94 million, while almost $43 million will be spent in SA and $4 million in Tasmania.
Disaster recovery special envoy Tony Sheldon said the funding would allow for affected communities to recover quickly.
"With many communities suffering from recurring disasters, it's clear the financial burden is weighing on flood-impacted regions," he said.
"The recovery workload and the costs associated with that are creating challenges for local councils - they're finding it particularly difficult to keep up with repairs to roads and other infrastructure such as bridges, culverts, levees, bike lanes and footpaths."
Regional Development Minister Kristy McBain said the advance funding came following calls from state and local governments.
"Mayors and council representatives were clear about the growing need for more up-front help, and I'm very pleased the Albanese government has been able to deliver that so quickly," she said.
"Councils are on the front line of disasters, and we need to ensure they are adequately supported both in planning for and recovering from disasters."
Opposition tourism spokesman Kevin Hogan, whose electorate was heavily affected during last year's floods in Lismore on the NSW north coast, said the money should go towards mitigation programs.
"One of the things I think that the focus of money should be on is flood mitigation programs and prevention programs, rather than after the event programs," he told Sky News on Friday.
Mr Hogan called for the government to properly implement the house buyback scheme in the area for flood-affected homes, following criticism it had been implemented too slowly.
