This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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The flood levy - Helping you understand the levy and how it affects you
This publication can be downloaded in Portable Document Format (PDF) - The flood levy - Helping you understand the flood levy and how it affects you [91KB].
To order a printed copy, note the NAT number for this product (NAT 73865-06.2011):
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- order online
- phone us on 1300 720 092 between 8.00am and 6.00pm, Monday to Friday.
To assist affected communities recover from recent natural disasters the Australian Government has introduced a Temporary Flood and Cyclone Reconstruction Levy (the flood levy).
The flood levy will only apply to income earned between 1 July 2011 and 30 June 2012.
You will not pay the flood levy if you have:
- a taxable income of $50,000 or less
- been affected by a declared natural disaster.
The flood levy is an increase in tax on that part of your income above $50,000.
Your taxable income payable
$0 to $50,000
$50,001 to $100,000
Half a cent for each $1 over $50,000
$250 plus 1 cent for each $1 over $100,000
Lloyd earns taxable income of $80,000 and has not been affected by a natural disaster. He does not pay the levy on the first $50,000 of income, he pays the levy on $30,000 ($80,000-$50,000). Lloyd will pay a levy of $150.00 for the year. Lloyd is paid weekly so his net pay will decrease by $2.88 a week.
If you earn over $50,000, your employer will withhold an extra amount from your regular pay from 1 July 2011.
For pay as you go instalment taxpayers, we will increase your instalment obligation to include the flood levy in 2011-12.
If you are eligible for exemption, you may need to take some steps to let us know that you are exempt from paying the flood levy, depending on your circumstance.
If you earn more than $50,000 in salary and wages, you can use a Flood levy exemption declaration (NAT 73797) to tell your employer you are exempt from the levy.
It is not compulsory that you tell your employer that you are exempt as any flood levy amounts overpaid by you will be credited in your 2012 income tax assessment.
If we can identify you as exempt, we will not include the flood levy in your instalment rate or amount.
If we do not identify you as being exempt, you may wish to vary your instalment during 2011-12 on your activity statement.
You will need to confirm your exemption when you lodge your 2012 tax return so that the flood levy is not included in your income tax assessment. Any flood levy amounts overpaid by you during the year will be credited in your 2012 income tax assessment.
For more information about the flood levy:
- phone us on 13 28 61 between 8.00am and 6.00pm, Monday to Friday.
If you do not speak English well and need help from us, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf, or have a hearing or speech impairment, phone us through the National Relay Service (NRS) on the numbers listed below:
- TTY users, phone 13 36 77 and ask for the ATO number you need
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need
- internet relay users, connect to the NRS on www.relayservice.com.au and ask for the ATO number you need.