The Flood Levy and You

The Flood Levy  – How are you affected?

 The Federal Government’s $1.8 billion flood levy legislation is now law and takes effect from 1 July 2011 for 1 year only.

The levy applies only to individual taxpayers with taxable incomes in the 2011-2012 financial year.  Other entities like companies, trusts, etc. will not have to pay the levy.

The levy will be applied to your Taxable Income as follows:

$0 – $50,000 No Levy
$50,001 – $100,000 0.5%
$100,001 + 1.0% of the excess over $100,000

 
The levy will be assessed at the time of lodgement of your income tax return for the 2012 financial year.

 PAYG Withholding taxpayers will be required to make levy payments throughout the year as the levy will be taken out of your regular pay; in the same way as they pay the Medicare levy.

PAYG Instalment taxpayers (e.g.: Quarterly IAS) will have the levy included in their PAYG Instalments.  People who are exempt from the Levy can seek a variation to their instalment payment.  Exemptions will be granted for taxpayers receiving a Government Disaster Recovery Payment for flood event in 2010-2011, taxpayers who know that they will be in losses or with incomes less than $50,000 for 2012.

For more information or assistance, ring the office on (03) 9585 7555 and ask for Noel or Amanda,
orcontact us by email.