Mr Abbott was in the flood-ravaged central Queensland town of Bundaberg on Saturday to offer support to residents and help clean up the area.
The visit came just days after Mr Newman called for more federal funding to build protective levees and other flood mitigation methods to prevent another disaster like the one currently affecting Queensland and NSW's east coasts.
Mr Abbott said the Howard government had initiated a program to relocate flood victims in low lying areas and he would support a similar scheme.
"I think the federal government should be prepared to look at the proposal that Campbell Newman has put forward because obviously prevention is better than cure," he told reporters.
Mr Abbott also called on the government to introduce relief loans and assistance for businesses that were not only physically damaged, but also commercially damaged.
Businesses in disaster areas should also have a three-month moratorium on GST and PAYG payments and a one-year break from tax penalties for misestimating tax liabilities.
"Lots of businesses in this city are going to be commercially impacted by this disastrous flood," he said.
"Not just those that have been physically damaged."
Mr Abbott spent the morning in Bundaberg helping prepare meals with the Salvation Army and cleaning up a 90-year-old woman's home in the city's east.
But he denied the visit was a media stunt, saying it was important for national leaders to be seen providing support.
Nationals Senator Barnaby Joyce, who was also visiting the city, added: "Imagine what the people of Bundaberg would think if we didn't turn up?"
