Flood levy

The flood levy was a temporary reconstruction tax that will fund the reconstruction of Queensland, Australia, following the 2010–2011 Queensland floods. The proposal passed Parliament on 22 March 2011. This levy will apply to everyone who has a taxable income of more than $50,000 a year, and will come into effect from 1 July 2011. Preliminary estimates, following consultation with the Queensland Government, have concluded that the Commonwealth Government will have to invest in $5.6 billion, in rebuilding flood-affected regions. Two thirds of that price will be delivered through budget cuts.

Passing the Parliament

The Flood Recovery Levy passed the Parliament on 22 March 2011. The bill passed the Australian House of Representatives with government support by Andrew Wilkie, Bob Katter, Tony Crook, and Adam Bandt. The Liberal/National Coalition Opposition opposed the bill. The bill proceeded to the Senate, with Family First Senator Steve Fielding and independent Nick Xenophon supporting the proposal. Under a deal with Senator Xenophon, the government will rewrite the terms of the Natural Disaster Relief and Recovery Arrangements to ensure state and territory governments take out disaster insurance or establish an equivalent fund.

Measures for delivering funding

The Gillard Government plans to deliver the funding primarily through spending cuts, which will raise approximately $2.8 billion. The Government will cut green programs such as the Green Car Innovation Fund, the Cleaner Car Rebate Scheme, and other programs. A further $1 billion will be raised through delaying major infrastructure projects around Australia. While the last $1.8 billion will be raised by funds received through the flood recovery levy. This levy does not apply to anyone directly affected by the disaster.

References

1. http://www.pm.gov.au/press-office/rebuilding-after-floods 2. http://www.alp.org.au/agenda/flood-recovery/flood-levy-facts/ 3. http://www.alp.org.au/agenda/flood-recovery/ 4. http://www.theaustralian.com.au/national-affairs/gillards-flood-and-cyclone-levy-wins-vote/story-fn59niix-1226026374142 5. http://www.news.com.au/breaking-news/national/parliament-passes-flood-levy/story-e6frfku9-1226026280314