Murrindindi Shire Council says the scale, cost and complexity of recovery following the January 2026 bushfires clearly exceeds the Shire's capacity to manage alone and is calling for recovery funding that is proportionate to the geographic spread, concentration of losses and ongoing recovery burden experienced locally.
The January 2026 bushfires affected more than twenty communities across Murrindindi Shire, causing widespread devastation to farmland, residential areas and critical infrastructure across a large and highly dispersed rural municipality.
Council's current assessments estimate the municipal recovery task alone at around $105 million, a figure well beyond Council's financial capacity.
This estimate reflects Council‑related recovery costs only. The broader financial impact on the community is substantially higher. For example, the cost to replace almost 5,000 kilometres of fencing across the Shire is now estimated at $120-140 million, highlighting the immense burden facing landholders and primary producers as recovery continues.
Murrindindi Shire Mayor Cr Damien Gallagher said the figures illustrate both the severity of the fires and the long road ahead for recovery.
"The impact of the January 2026 bushfires on Murrindindi has been profound and far‑reaching. Our communities, farming sector and Council infrastructure have all been hit on a scale we have not seen before.
"A $105 million municipal recovery task is simply not something a rural council of our size can absorb without significant additional government support," said Cr Gallagher.
Council has welcomed the assistance provided by the State and Federal Governments to date, including the $15 million announced on 14 January for fire‑impacted councils across Victoria. However, Murrindindi's allocation to date is $1.3 million, representing less than 9 per cent of the total fund.
"We acknowledge and appreciate the funding that has been made available so far, and it is an important early contribution to locally led recovery," Cr Gallagher said.
"However, the level of funding allocated to Murrindindi does not yet reflect the true scale of damage and the disproportionate impact our Shire has experienced."
Murrindindi was the most impacted municipality of the statewide impact from the January 2026 fires. Of the 451 homes destroyed across Victoria, 219 - about 48 per cent were in Murrindindi. Almost half of all sheds and other structures lost statewide were also in the Shire, along with approximately 50 per cent of fencing damage.
In addition, more than 450 kilometres of Council roads were damaged, alongside extensive roadside vegetation impacts requiring assessment, treatment and ongoing management across a vast rural landscape.
"What is critical in this discussion is proportionality," Cr Gallagher said.
"Murrindindi experienced nearly half of all home losses across the state, and the geographic spread of damage has significantly increased recovery complexity. It is reasonable and appropriate that future funding allocations reflect that reality."
Unlike other fire‑affected locations where damage was concentrated in a relatively small area, the impacts in Murrindindi are highly dispersed across a large rural Shire. This has materially increased the cost and complexity of recovery, service delivery and community support, with long travel distances, multiple communities affected, and many residents experiencing ongoing trauma.
Recovery is underway, with Council working closely with communities and partner agencies to support clean‑up, restore access and essential services, and provide planning and rebuilding assistance. Six community recovery hubs have been established across the Shire to meet local needs, reflecting both the scale and geographic spread of the impacts.
At the same time, Council is actively planning for the longer‑term recovery effort, including rebuilding critical infrastructure, supporting primary producers and local businesses, and investing in community wellbeing and mental health.
"Council has raised its concerns with Victorian Government Ministers. We remain committed to working constructively with State and Federal Governments. Funding decisions grounded in evidence, taking into account impact, geography and recovery cost are essential to ensure our communities can rebuild safely, quickly and with confidence in the future," said Cr Gallagher.
Council says further investment will be critical to protect the long‑term productivity of the region and ensure Murrindindi's communities remain strong, resilient and connected as recovery continues.
