Given the large and increasing bushfire threat to lives and property in Australia, there is a need for economic evaluation of risk mitigation policies that can be implemented by governments and homeowners. Three broad policies applicable for existing at‐risk communities are evaluated: expanded use of landscape‐scale prescribed fire; home ignition zone treatment (bushfire defence sprinklers); and early evacuation when a bushfire is burning on extreme or catastrophic fire danger days. Early evacuation is the only option that yields net economic benefits relative to existing policy.