The Queensland Government says it would consider an increase in flood funding if the Federal Government increases its contribution.
Queensland Recovery and Resilience Minister David Crisafulli says the $80 million betterment funding for flooded communities falls short of what the councils need to rebuild infrastructure.
The state and federal governments contributed $40 million each to the fund.
Mr Crisafulli says at least $200 million is needed.
"What we do need is to lever a greater commitment off the Federal Government, with an election in September ... it makes imminent sense you would never throw away your leverage in a negotiation like that," he said.
"At the end of the day this funding has always been funded 75/25 between the federal and state governments.
"We're willing to do 50/ 50 when it comes to betterment for regional Queensland."
"In an election year you would be silly to throw away your leverage at a time when I think we can milk some money out of Canberra to do the job properly the first time rather than constantly coming back and playing the hero after it's all destroyed.
"We think a $200 million betterment fund is a start but we also think there's more to be done."
Gympie Mayor Ron Dyne says the funding is limited but the council has already started applying for its share.
"We're looking for applying in the instance of betterment in the roads issue to see what we can do as far as that goes," he said.
"It's fairly limited funds across Queensland."
© ABC 2013
16:28 EDT Hail is caused when raindrops are lifted up into the atmosphere during a thunderstorm and then supercooled by temperatures below freezing, turning them into ice balls.