With a little bit of luck, 2012 will be the year NSW stops the QLD State of Origin winning streak & we also finish paying to help rebuild the state…
As of 1 July 2011, the government’s new flood levy (also known as the Temporary Flood and Cyclone Reconstruction Levy) was put in place and will be used to assist communities to recover from recent natural disasters.
The flood levy, which applies for the 2011-12 income year and will be paid by all taxpayers earning over $50,000 who were not affected by a declared natural disaster, will help fund the rebuilding of essential infrastructure such as roads, bridges and schools.
If you’re an employer who has staff earning over $50,000, you should be withholding an extra amount of tax from their regular pay. Click here to use the ATO Flood Levy Calculator.
For pay as you go instalment taxpayers, the Federal Government should have increased instalment obligations to include the flood levy in 2011-12.
If your business or any individual is eligible for an exemption from this levy, some steps will need to be taken to inform the ATO, depending on your circumstance. This exemption will need to be confirmed when lodging 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.
You should speak to your advisor for more information regarding the flood levy.
This article provides general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. AXA FP and it’s Authorised Representatives do not accept any liability for any errors or omissions of information supplied.
Author: Daniel Brown
Authorised Representative of
AXA Financial Planning Limited
AFSL Number 234663