Why Australia Is Experiencing Extreme Heat and Increased Bushfire Risk

By RiskThinking Team

January 12, 2026 at 7:00 a.m. EST1 min readThought Leadership

Australia is currently experiencing extreme heat and hazardous bushfire conditions across large parts of the country, particularly in eastern and southeastern regions. These conditions are caused by multiple factors, including short-term weather patterns, large-scale climate influences, and long-term climate change. This explainer highlights the main reasons behind the current situation in simple, straightforward language.

1. What Is Causing the Current Heatwave?

Trapped Hot Air Over the Continent

The main cause of the extreme heat is a large mass of very hot air that developed over northern Australia and has been drawn southward. Usually, weather systems move steadily from west to east, allowing cooler air to replace the hot air. However, this has not happened.

A strong, slow-moving high-pressure system sitting over the Tasman Sea is acting as a blocking system. This prevents cooler air and rain-bearing fronts from reaching much of eastern Australia, trapping heat over the land for a prolonged period.

Blocking high-pressure systems are a common feature of Australian heatwaves and are often linked to long-lasting hot, dry, and hazardous conditions.

2. Why Are Fire Conditions So Dangerous?

Extremely Dry Vegetation

Consistently high temperatures, combined with warm nights, have dried out soils and plants. When vegetation loses moisture, it becomes highly flammable, making fires easier to ignite and faster to spread.

Strong Winds and Dry Lightning

Forecasts predict strong, gusty winds, which can intensify existing fires and carry embers over long distances. Thunderstorms may also occur, but with rain evaporating before reaching the ground, dry lightning is a common cause of bushfires during heatwaves.

3. The Role of Large-Scale Climate Patterns

Several major climate systems influence Australia’s weather. Currently, none are providing significant relief from the heat.

Southern Annular Mode (SAM)

SAM affects how far north or south weather systems travel around Antarctica. When SAM favors high-pressure systems over southern Australia during summer, heatwaves tend to last longer. Recent patterns have supported the development and persistence of the blocking high affecting Australia.

El Niño–Southern Oscillation (ENSO)

The Pacific Ocean is in a weak La Niña phase. While La Niña typically brings cooler, wetter summers to eastern Australia, this event has been unusually weak and has not produced the expected rainfall. As a result, it has done little to reduce heat buildup.

Indian Ocean Dipole (IOD)

The Indian Ocean Dipole is currently neutral, meaning it is not providing extra moisture to help lower heat and fire risk.

Madden–Julian Oscillation (MJO)

The MJO, which can boost tropical rainfall and storm activity, is presently weak. This reduces the chances of widespread rain that could otherwise break the hot, dry conditions.

4. How Climate Change Is Amplifying Events Like This

Long-term warming has shifted Australia’s climate baseline. This means:

Heatwaves are more frequent and last longer than in previous decades.

Extreme high temperatures that were once rare are now more common.

Nights stay warmer, preventing vegetation from recovering moisture overnight.

Consequently, weather phenomena that used to happen occasionally are now more frequent, increasing the risk of severe bushfires.

5. Implications Moving Forward

The current heatwave and bushfire danger result from a combination of immediate weather patterns and long-term climate shifts. While individual heatwaves are driven by specific conditions, climate change is boosting their likelihood, intensity, and duration.

Understanding these drivers is vital for emergency response, community readiness, infrastructure resilience, and long-term planning. Extreme heat and fire risk are now recurring features of the Australian summer, demanding ongoing adaptation and risk management.

6. Impact on Risk, Insurance, and Asset Exposure

Extreme heat and bushfire conditions are not just environmental challenges; they also pose increasing financial and asset risks.

From a risk and insurance standpoint, prolonged heatwaves and severe fire weather directly impact:

- Property and infrastructure, especially in bushland–urban interface areas where fires can spread rapidly into residential and industrial zones;

- Critical infrastructure, including electricity networks, transport routes, telecommunications, and water systems, all vulnerable to heat stress and fire damage;

- Insurance claims, as higher fire intensity, larger burn areas, and repeated events raise claim frequency and severity;

- Asset valuation and credit risk, as recurring climate extremes diminish the resilience and insurability of affected assets.

Importantly, these risks are evolving faster than traditional historical data suggest. What was once considered rare now occurs more often, meaning past loss data underestimate current and future risks.

For insurers, investors, governments, and asset owners, this underscores the importance of:

- Moving beyond reliance on historical averages;

- Using forward-looking assessments of heat and fire exposure;

- Identifying assets in high-risk zones where extreme events are becoming more frequent;

- Planning adaptation, mitigation, and resilience strategies accordingly.

Extreme heat and bushfire risks are now embedded in Australia’s risk landscape. Understanding their causes and how they develop is essential for managing their economic and financial impacts.

This statement aims to provide a clear, factual context for current conditions and does not rely on short-term weather forecasts or speculative models. It reflects well-established physical drivers observed in Australia’s climate system.