An Impact Report compiled by Murrindindi Shire Council details the severe and compounding impacts of the January 2026 Longwood Bushfire and earlier floods on local businesses, farms and the visitor economy, making clear that recovery will be won through coordinated investment across government, philanthropy and industry, over the long term.
Council's work on developing an Economic Development Strategy and Shaping Murrindindi's Future provides a strong and viable roadmap for recovery and future economic prosperity within the Shire for future generations. However, recovering from this catastrophic natural disaster will require substantial targeted support from State and Federal government along with partnership and significant investment from the private sector.
We are calling for visitors to return and support local businesses and communities impacted by the fires.
Feedback from affected businesses and primary producers, supported by data from Agriculture Victoria, shows recovery will take years and requires sustained, flexible and outcomes‑focused support that helps enterprises reopen, re‑employ and rebuild productive capacity.
Primary producers and small businesses across the entire Shire have experienced significant income disruption, livestock and crop losses, and extensive damage to fencing and core infrastructure. Almost 7,800 animals were killed and over 4,800 kilometers of fencing destroyed, with replacement costs estimated at over $120 million - a scale of loss that directly affects regional supply chains, on‑farm productivity and local employment. Loss of sheds, machinery and irrigation systems continues to delay recovery and keeps businesses from returning to full production.
New spending data highlights immediate economic shock. The fire event resulted in $3.47 million reduction in total spending across Murrindindi Shire over 24 days, a 39 per cent decline compared to a non event trading period. Total spend fell from $12.2 million to $8.75 million, driven almost entirely by the collapse in visitor expenditure.
- Visitor spending declined by $3.55 million, or 74 per cent. Resident spending remained largely stable, falling by just $60,247, or 2 per cent. This indicates continued local purchasing of essential goods and services, but a sharp contraction in the visitor economy.
- Yarck recorded an estimated $375,000 loss, with visitor spending down around 90 per cent.
- Alexandra recorded a 77 per cent fall in visitor spending and a 22 per cent reduction in total spend, despite a 9 per cent increase in resident activity.
- Eildon experienced a 53 per cent decline in visitor spend and a 47 per cent reduction in total spending.
- Marysville saw visitor expenditure fall by 75 per cent, driving a 51 per cent drop in total spend.
- Yea experienced a 90 per cent collapse in visitor spend, contributing to a 36 per cent decline in total local expenditure.
This data also identifies substantial gaps in insurance coverage. Many businesses are uninsured or under insured and delays in insurance assessments and payouts are increasing financial stress and limiting the ability of otherwise viable enterprises to reinvest quickly.
The toll on people is growing. Families and business owners are dealing with ongoing stress, safety worries and uncertainty about the future. At the same time, fewer visitors are coming to the region, and with many farmers nearing retirement, there is a real risk to local jobs, productivity and the long‑term strength of our communities.
The report concludes that one off grants and short-term relief are insufficient for asset heavy, production-based businesses. It calls for integrated economic, infrastructure and wellbeing recovery programs that are designed for the realities of regional production, and that mobilise multiple partners to stabilise and rebuild the Murrindindi Shire economy.
Portfolio Councillor for Economic Development, Local Jobs, and Skills, Sandice McAulay said this report highlights the scale and duration of recovery facing the region, and the importance of a shared recovery partnership that brings together State and Commonwealth programs with private and philanthropic co‑investment.
"It's important we acknowledge the significant and ongoing impacts these natural disasters have caused our community. For example, fencing is critical economic infrastructure and without targeted support to rebuild these foundations, businesses cannot restore production, retain staff or sustain operations, impacts that flow through the whole regional economy."
"We are inviting philanthropists and business leaders to partner with us in practical, high‑impact recovery: rebuilding productive infrastructure, backing local contractors and jobs, and supporting integrated case management and mental health services so people can stay on their land, keep businesses open and communities strong if you have plans to invest and support the local economy please reach out to the team."
"Flexible programs, reduced administrative burden, funded local case management and integrated mental health support are key to keeping businesses operating and communities resilient."
"We can't forget the impact that visitors to the region have on our local economy. We are open for business and look forward to seeing visitors back supporting local business as we set our vision to the future."
