Introduction of Flood Levy for 2011 - 2012
What is the “Flood Levy?”
The Flood Levy is an additional tax paid by most employees to assist and support the communities affected by the floods earlier this year. The purpose is to assist in restoration of essential infrastructure. As a temporary levy, it will only apply to some tax payers for the year of 2011-2012.
Who will be affected?
The Flood Levy will only apply to those Australian tax payers with taxable incomes of more than $50, 000 for the financial year 2011-2012. The Flood Levy will not apply to taxpayers who were personally affected by the disasters.
Who will be exempt from payment?
- - Australians with a taxable income of less than $50,000 for financial year 2011-2012.
- - Taxpayers who are in receipt of an Australian Government Disaster Recovery Payment for a flood event that occurred during the 2010-11 income year.
- - Individuals fitting this exemption will need to submit the Flood Levy declaration form.
How does the new Flood Levy impact your payroll software?
ePayroll users will automatically have the Flood Levy applied to all employees. For employees exempt from payment of the Flood Levy because they were in receipt of an Australian Government Disaster Recovery Payment, simply tick the “Yes” radio button in the taxation tab in the employee record. See below:
Employees earning less than $50,000 per annum, will automatically not have the Flood Levy applied to their tax calculation. Employees who receive a salary increase throughout the year whose earnings exceed $50,000 will automatically have the Levy applied.
Further information on flood relief support and assistance from the Australian Government can be found at http://www.disasterassist.gov.au.