More than $40 million will be spent subsidising freight to Western Australia's Kimberley after once-in-a-century-flooding cut a key transport route.
Premier Mark McGowan says the funding will be the equivalent of any extra transport costs caused by the Fitzroy River flood in January.
It swept away part of the Great Northern Highway and a major bridge at the town of Fitzroy Crossing, severing the only road to the north of the state.
"We want to make sure people and businesses in that part of the Kimberley are protected from these costs because its just not fair," Mr McGowan told reporters on Thursday.
"I understand it hasn't been done before but the nature of these floods and the remoteness of these floods means its a unique situation."
Road freight to WA's north is currently forced to travel via South Australia and the Northern Territory "massively increasing the costs", Mr McGowan said.
The subsidy, which will cost taxpayers an estimated $42 million, is likely to continue until the roads and bridge are repaired.
"It will provide support to local businesses and citizens in the area and ensure those big cost increases ... won't be met or passed on to consumers in the area," the premier said.
The joint federal and state government freight subsidy funding for impacted business will be backdated to January 1.
