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Mr Morrison announced this morning the federal government would co-fund the package in a reversal from yesterday.
The package would see homeowners hit by flooding in February be able to refurbish or raise their home, or resell to the government.
But the cash comes with a caveat, with the Prime Minister calling for greater transparency in how it is spent.
“We don’t want to have politicking over the support that is provided,” he said.
“I want them to be transparent with the payments that are being made, I want them to report to the public.
“But as we’re coming into this election, I think people can see what’s going on here.”
Mr Morrison said the commitment means the Federal government is now meeting two-thirds of the cost of Queensland’s flood response.
“We’ve already spent more directly than the state government has ever committed to.”
Mr Morrison was lashed by Acting Premier Cameron Dick yesterday after he wrote a letter refusing to co-fund the package.
“Every Queenslander needs to know that this letter shows that Scott Morrison does not care about flood victims who need help from all levels of Government,” Mr Dick said.
“It is clear the Prime Minister has made a political calculation.
“He has decided he doesn’t need flood victims to vote for him – so he has nothing to offer them.”
Mr Morrison has a narrowing window of time to call the election, which must be held before the end of May.