Prime Minister Malcolm Turnbull announced the jointly funded state and federal government emergency fund with an overflowing Tamar estuary as the backdrop on Thursday before he visited flood-devastated Latrobe.

“This support we’re announcing today is designed to provide immediate assistance to communities in the hardest hit local government areas,” he said in Launceston.

The Natural Disaster Relief and Recovery Arrangements fund will be financed 50-50 by the state and federal government but the federal government will provide 75 per cent of the funding once disaster costs reached $19 million.

The emergency fund will help some of the 18 council areas affected by flooding undertake disaster and clean-up operations and restore essential services.

Businesses and primary producers will be given access to concessional interest rate loans through the fund and grants will be provided to non-profit organisations.

Residents will be able to access three means-tested grants of up to $8875 each to assist in house repairs, item replacement and temporary living expenses.

These grants are in addition to those already announced by the state government of up to $750 for emergency needs including food, shelter and clothing.

Local Government Association of Tasmania president Doug Chipman said the fund would allow councils to proceed with recovery arrangements with confidence.

“The costs to the most impacted councils and communities will be significant and therefore the activation of the Natural Disaster Relief and Recovery Arrangements is most welcome,” Cr Chipman said.

Federal Opposition Leader Bill Shorten also visited the North and North-West on Thursday – first for a briefing at the State Emergency Services headquarters in Youngtown before also visiting flood victims on the North West.

At a press conference in Latrobe, Mr Shorten said governments should commit more money towards flood mitigation.

“I think governments need to contemplate more flood mitigation rather than pay out more disaster relief,” he said.

Mr Shorten had made a personal call to Mr Turnbull ahead of the Tasmanian visit in an effort to put the politics of the federal election aside and visit flood disaster areas together but the Prime Minister declined the offer.

“I’m not going to criticise him at all; this is about us showing solidarity with people in distress,” he said.