UPDATE 07/04: The Federal Government appears to have backflipped on its earlier rejection of QLD's call for funding. 

ORIGINAL 06/04: The Federal Government has knocked back the Queensland Government’s plan for a $741 million joint flood relief package. 

Last month, Premier Annastacia Palaszczuk wrote to Prime Minister Scott Morrison to request that the Commonwealth pay for half of a proposed funding package.

The plan was to give flood-affected Queenslanders the option to retrofit, raise up or voluntarily sell back homes at a high risk from future floods.

The plan would have provided grants of up to $50,000 to modify 5,500 flood-affected homes, as well as grants of up to $100,000 to raise 1,000 homes.

Prime Minister Scott Morrison has responded to Ms Palaszczuk’s letter, saying the ideas were matters for state and local governments.

“These are important programs that, traditionally, fall within the responsibilities and discretion of local and state governments and, therefore, outside the scope of our DRFA [Disaster Recovery Funding Arrangements] process,” Mr Morrison wrote, according to the ABC.

“These programs can, and should, be directly funded and delivered by the Queensland government, in the same way that the Commonwealth fully funds significant elements of our own contribution.”

The Commonwealth has made a small concession, agreeing to a 50:50 split on a $30 million package to support local governments and agencies with clean-up costs.

The Queensland Government says it will continue with its half of the flood relief package without federal support, admitting this will not “go as far” to help flood victims.