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New Flood Levy - How much will you pay? |
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The Federal Government’s $1.8 billion flood
levy legislation has passed the Senate with the support of the Greens and
Independents.
We note the following for your attention:
- The Government will apply a temporary
flood levy in the 2011-2012 financial year;
- The levy will apply at 0.5% of taxable
income in excess of $50,000, and 1%
of taxable income in excess of $100,000.
Eg a person with taxable income of $120,000 will pay $450;
- No levy is payable where the
person has taxable income of $50,000 or less;
- The levy applies only to
individual taxpayers with taxable income over the above thresholds. All other entities (eg companies, trusts,
etc) will not have to pay the levy;
- Those taxpayers who receive an
Australian Government Disaster Recovery Payment for a flood event in 2010-2011
will be exempt from the levy;
- Taxpayers will make their levy
payments through the tax taken out of regular pay in the same way they pay the
Medicare levy;
- Employers will need to apply a
new Pay As You Go (PAYG) Withholding schedule to take account of the levy. The Tax Office will issue these schedules in
due course; and
- PAYG Instalment taxpayers will
have the levy included in their PAYG Instalments. People who are exempt from the Levy can seek
a variation to their instalment payment so they do not have to pay the levy.
If you wish to calculate your estimated
flood levy for the 2012 year, please see the attached link:
http://www.treasury.gov.au/floodrebuild/content/calculator.asp
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Contact:
Daniel Clements
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Paul Clements
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T: + 61 3 8618 2222 |
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