Australia Institute research has found that a fund, paid for by big polluters responsible for climate change, would save taxpayers tens of billions of dollars a year.
The research found that a levy of $30 per tonne of carbon pollution caused by coal, oil and gas production would have raised $44 billion this year alone.
The South Australian and federal governments have, so far, pledged $28 million of taxpayers' money in response to the algal bloom, which is being driven by rising sea temperatures due to climate change.
It's having a devastating impact on sea life, tourism, fishing, and other marine industries.
"As it stands, South Australian communities, families and business owners are being left to foot the bill for this crisis, and that simply isn't good enough," said Noah Schultz-Byard, a South Australia-based Director at The Australia Institute.
"State and federal governments have been caught flat-footed in their response to this algal bloom tragedy.
"If the government had a National Climate Disaster Fund at the ready, so that they could quickly roll out the level of support that is actually needed in these communities, it would be a very different story.
"Currently, regular Australians are paying for climate-related disasters through higher taxes, increased insurance premiums, and lost income.
"Making fossil fuel producers contribute to the cost of dealing with climate change just makes sense. It is a fundamental economic principle that, if you cause the harm, you should pay for the repair."
