One-off levy in response to recent floods
As part of its response to the challenge of rebuilding flood-affected regions, the Prime Minister has announced that the government will introduce a one-off levy to certain income earners which will be used to help to rebuild the infrastructure which has been torn apart by the recent floods.
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.
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 legislation will be introduced into the parliament in the first sitting week in February 2011.
Source: Prime Minister speech and media release, 27 January 2011