The Prime Minister has announced the Federal Government’s response to the reconstruction costs following the floods in Queensland, northern NSW and Victoria.
The response consists of a levy, spending cuts and deferral of infrastructure projects.
UPDATE: See also Australian Government Disaster Assist and Queensland flood assistance for businesses.
The Government will introduce a levy which will apply only in the 2011-12 financial year.
The levy is based on an individual’s ability to pay:
Anyone earning under $50,000 will not pay the levy.
People earning between $50,000 and $100,000 will pay 0.5 per cent of taxable income in excess of $50,000.
People earning over $100,000 will pay 0.5 per cent of taxable income in excess of $50,000 and 1 per cent of taxable income in excess of $100,000.
The levy will be paid through tax taken out of regular pay, in the same way the Medicare levy is paid.
To make sure those affected by the floods do not have to pay the levy, anyone who received an Australian Government Disaster Recovery Payment for a flood event in 2010‑11 will be exempt from the levy.
The Government will make $2.8 billion in spending cuts, with the funding to go towards the recovery and reconstruction effort, including:
Not proceeding with the Cleaner Car Rebate Scheme
Abolishing the Green Car Innovation Fund
Reducing and deferring spending on the Carbon Capture and Storage Flagships and Solar Flagships programs and the Global Carbon Capture and Storage Institute
Abolishing the Capital Development Pool from 1 January 2012
Discontinuing funding for the Australian Learning and Teaching Council
Reducing the National Rent Affordability Scheme dwelling target
Redirecting funds from the Priority Regional Infrastructure Program and Building Better Regional Cities Program
Capping annual claims under the Liquefied Petroleum Gas (LPG) Vehicle Scheme
Capping funding for the Renewable Energy Bonus Scheme – Solar Hot Water Rebate
Not proceeding with Round 2 of the Green Start Program
Capping funding for the Solar Homes and Communities Plan
Withdraw funding to the O-Bahn City Access project.
