Government Flood Levy
A Government Flood Levy of 0.5% is to apply in 2011-12.
The Government will introduce 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 per cent of taxable income in excess of $50,000.
•People earning over $100,000 will pay 0.5 per cent of taxable income in excess of $50,000 and 1 per cent of taxable income in excess of $100,000.
•Someone earning $60,000 a year will pay 96 cents per week.
•Someone on average annual adult full-time total earnings of $68,125 will pay $1.74 a week.
•Someone earning $100,000 a year will pay $4.81 per week.
The levy will be paid through tax taken out of regular pay, in the same way the Medicare levy is paid.
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 explanation regards specific taxation services, tax deductions, planning and tax advice please contact A Grade Tax Accountants Penrith on (02) 4731-1405 or visit our website www.agradetax.com.au
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