The Government intends to introduce a temporary flood levy in the 2011/12 financial year, to assist with part of the costs of rebuilding infrastructure following the recent floods. It is proposed that the levy will not be paid by those affected by the floods or by lower income earners, and will apply only in the 2011/12 financial year. The rate of the levy will depend on a taxpayer’s taxable income (TI) as follows:
Anyone with a TI under $50,000 will not pay the levy;
Those with a TI between $50,000 and $100,000 will pay 0.5 per cent of TI in excess of $50,000; and
Those with a TI over $100,000 will pay 0.5 per cent of TI in excess of $50,000 and 1% of TI in excess of $100,000.
Examples
An individual taxpayer on average annual adult full-time total earnings and TI of $68,125 will pay an extra $90.63 in tax (i.e., ($68,125 – $50,000) x 0.5%). An individual taxpayer with TI of $120,000 in 2011/12 will pay an extra $450 in tax (i.e., ($120,000 – $100,000) x 1.0%) + ($100,000 – $50,000) x 0.5%)).
