On 22 March 2011, the Senate passed Tax Laws Amendment (Temporary Flood and Cyclone Reconstruction Levy) Bill 2011 and Income Tax Rates Amendment (Temporary Flood And Cyclone Reconstruction Levy) Bill 2011 without amendment.
The Bills amend the ITAA 1997, the Income Tax Rates Act 1986 and the Income Tax (Transitional Provisions) Act 1997 to introduce a one-year progressive flood reconstruction levy in the form of additional income tax on Australian resident and foreign resident individuals in the 2011-12 financial year.
The amount of levy payable is at the rate of 0.5% where the taxpayer has a taxable income of between $50,001 and $100,000, and 1% where the taxpayer has a taxable income in excess of $100,000. No levy is payable where the taxpayer has a taxable income of $50,000 or less or where they fall into an exemption category.
The Bills now await Royal Assent.