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Flood Levy
Individual tax payers, including foreign residents, with Australian taxable income greater than $50,000 will be subject to the flood levy. The following table shows the amount payable based on taxable income:
| 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 |
Example 1: An individual with taxable income of $90,000 will pay the flood levy on $40,000. For this individual the flood levy equates to an additional $200 payable for the year.
Example 2: An individual with taxable income of $180,000 will pay the flood levy on $130,000. For this individual the flood levy equates to an additional $1,050 payable for the year.
For salary and wage earners your employer will automatically calculate your levy. For individuals in the PAYG instalment system the Australian Taxation Office will incorporate your levy into the instalment. Eligible Termination Payments and Superannuation Benefits will be subject to the levy if they are included in your taxable income.
For employers the flood levy has been incorporated into the new tax tables which will only apply for the 2011-2012 financial year.
Some people affected by the natural disasters will be exempt from the flood levy. There are three eligible exemptions.
Class 1: Australian Government Disaster Recovery Payment
This payment was issued by Centrelink for people affected by the natural disasters
Class 2: Natural Disaster Relief and Recovery Arrangements
All four conditions need to be meet to qualify for this payment. For further information on the conditions please refer to the Australian Taxation Office website.
Class 3: New Zealand citizens holding a special category visa who are not eligible for the Australian Government Disaster Recovery Payment.
For more information about this topic, please contact Business Services directly on (03) 9832 8450.