SOUTHERN Downs Regional Council has been assured by Federal Member for Maranoa Bruce Scott that more flexible disaster recovery funding is on the horizon.

Mr Scott made the assurances after the Productivity Commission's final report into Natural Disaster Relief and Recovery Arrangements was tabled last week. 

The local member said the Federal Government recognised flaws in the current system and was working on a new system that would fairly address issues unique to regional and remote councils in the Maranoa.

"I understand councils west of the Great Diving Range, with little to no access to contract labour, have their own roads crews with a wealth of experience and local knowledge behind them," Mr Scott said.

"This kind of knowledge is key to reforming current arrangements and paving the way for more efficient and productive disaster recovery."

Mr Scott said the Federal Government wasn't proposing any reductions to funding or changes to the existing thresholds.

"Proposed reforms will focus on getting the balance right between recovery and mitigation," he said.

"This Liberal National Coalition Government is continuing discussions with the Queensland Government to secure support for a new up-front funding model.

"The Federal Government is committed to providing a mutually beneficial system with better value for money for the Commonwealth and flexibility for local councils to undertake efficient disaster recovery works."

The model would provide grants to the state based on early assessment of disaster damage and impact rather than the current system of reimbursing costs based on detailed rules, according to Mr Scott.