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This report quantifies the economic and social value of social capital -connections, trust, and reciprocity within communities- in disaster resilience. The escalating costs of disasters, currently $38 billion per annum for the Australian economy, highlights the pressing need for disaster resilience strategies and investments.

Key findings of the report show that:

• The impact of bushfires is most prominent among disadvantaged and economically vulnerable subgroups of the population, including older people, the unemployed, individuals who are divorced, and those living in remote areas.
• The most severely impacted individuals among affected groups are those residing in areas with low levels of social capital, while communities with higher social capital recover faster and bear negligible impact.
• The monetary value of social capital in reducing negative mental health and life satisfaction effects after disasters is substantial -- varying from $396 per year per person for older people to $3808 per person per year for individuals in remote areas. For a remote community of around 6,770 people this equates to around $25 million.