The arrivial of the new financial year also brings the introduction of the Temporary Flood and Cyclone Reconstruction Levy. It is designed to assist affected communities to recover from the recent natural disasters by providing additional funding to rebuild essential infrastructure such as road, bridges and schools.
This levy will only apply to those who have a taxable income over $50,000 in the 2011 – 12 financial year. This includes foreign residents who have an Australian Income.
The levy will be applied to your taxable income and is calculated based on the following brackets:-
| Taxable Income | Flood Levy on this Income |
| $0 to $50,000 | Nil |
| $50,001 to $100,000 | Half a cent for each $1 over $50,000 |
| Over $100,000 | $250 plus 1c for each $1 over $100,000 |
The Australian government has also noted that certain people affected by natural disasters will also not be required to pay the flood levy. Those people will be notified via a letter confirming their exemption status.
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