The federal government should help disaster-proof the country by building a fleet of firefighting aircraft and implement recommendations from an inquiry into insurance costs, Labor says.
Opposition Leader Anthony Albanese has also called for immediate spending on priority projects in natural disaster-prone regions.
"Sadly, I do not believe Australia is adequately prepared for another natural disaster season," Mr Albanese said in a letter to Prime Minister Scott Morrison.
He called on the government to implement recommendations from the Australian Competition and Consumer Commission's final report of its three-year Northern Australia Insurance Inquiry.
Mr Albanese said Australia was already facing another difficult natural disaster season, with a different set of challenges to last year.
"Already, Queensland and NSW have begun to experience hail storms, cyclonic winds and beach erosion," he said.
"We have also witnessed dozens of fires across Australia, including bushfires that raged across the world heritage-listed K'Gari (Fraser Island)."
Mr Albanese said the effects of climate change meant Australia is entering uncharted territory.
"We cannot continue to rely on what we have done previously," he wrote to Mr Morrison.
The ACCC report released this week said home, contents and strata insurance premiums are considerably higher in northern Australia than the rest of the country and have increased at a faster rate over the past decade.
These increased costs are leading to higher rates of households not insured for severe weather events, it said.
The ACCC recommended governments use direct subsidies in a targeted way to relieve severe financial pressure faced by households in specific areas. This would cost less and be more effective than other measures like government reinsurance pools.
Other recommendations to provide immediate help include abolishing stamp duty on home insurance or - if it is maintained - that it be based on the sum insured for a property rather than the cost of the premium.
The ACCC found a portion of stamp duty revenue could be used to make insurance more affordable for low-income consumers or to fund mitigation works.
"However, the best outcome for consumers would be for stamp duty to no longer be applied to home, contents and strata insurance, which are often considered essential products that some households struggle to obtain," ACCC deputy chair Delia Rickard said earlier.