The floods that hit Queensland will rank as one of the most costly natural disasters in Australia's history, Australian Treasurer Wayne Swan said in a note released on Sunday.

In his weekly economic note, Swan said the ongoing catastrophe in Queensland would make a blow bigger than that of Cyclone Tracy or the Victorian bushfires.

"Although the full impact won't be known for some time, obviously, the hit to our economy will be much larger than 1974 and much larger than other natural disasters in our memory," he said.

Swan said the federal government estimated about 26,000 homes in Brisbane, capital of Queensland, had been damaged by recent flooding and 3,000 in Ipswich, compared to 6,700 in Brisbane and 1, 800 in Ipswich 37 years ago.

The treasurer said one of the biggest losses would be due to the state's coal export industry. Consumers will face higher prices, as the bulk of fruits and vegetables were ruined in the flooding.

Swan said as a result of the huge reconstruction bill, the government will work through all options, including cuts in the federal budget as well as a temporary levy, an idea challenged by the Opposition leaders who claimed the Australians cannot afford additional economic burden in the wake of the flooding.

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