In a media release issued on 27 January 2011, the Prime Minister, Julia Gillard, announced the introduction of a one-year levy to help pay for the flood rebuilding effort.
The levy will not be paid by those affected by the floods, will not be paid by lower income earners, and will apply only in the 2011-12 financial year.
The levy is based on an individual’s ability to pay:
- Anyone earning under $50,000 will not pay the levy.
- People earning between $50,000 and $100,000 will pay 0.5% of taxable income in excess of $50,000.
- People earning over $100,000 will pay 0.5% of taxable income in excess of $50,000 and 1% of taxable income in excess of $100,000.
To make sure those affected by the floods do not have to pay the levy, anyone who received an Australian Government Disaster Recovery Payment for a flood event in 2010-11 will be exempt from the levy.
For further information about the levy, go here