The flood levy was a temporary reconstruction tax that funded the reconstruction of affected parts of Queensland, Australia, following the

2010–2011 Queensland floods A series of floods hit Queensland, Australia, beginning in November 2010. The floods forced the evacuation of thousands of people from towns and cities. At least 90 towns and over 200,000 people were affected. Damage initially was estimated at ...

. The proposal passed Parliament on 22 March 2011. This levy applied to those with a taxable income of more than $50,000 a year, coming into effect from 1 July 2011. The rate was 0.5% for income above $50000 and 1% for income above $100000. Those who were affected by a declared natural disaster were exempt. Preliminary estimates, following consultation with the Queensland Government, concluded that the Commonwealth Government needed co-investment of $5.6 billion. Two-thirds of that cost was delivered through budget cuts.

Passing the Parliament

The Flood Recovery Levy passed the Parliament on 22 March 2011. The bill passed the

Australian House of Representatives The House of Representatives is the lower house of the bicameral Parliament of Australia, the upper house being the Senate. Its composition and powers are established in Chapter I of the Constitution of Australia. The term of members of the ...

with government support by

Andrew Wilkie Andrew Damien Wilkie (born 8 November 1961) is an Australian politician and independent federal member for Clark. Before entering politics Wilkie was an infantry officer in the Australian Army., Australian Parliament House Biographies; 19 Augu ...

Bob Katter Robert Bellarmine Carl Katter (born 22 May 1945) is an Australian politician who has been a member of the House of Representatives since 1993. He was previously active in Queensland state politics from 1974 to 1992. Katter was a member of the ...

, Tony Crook, and

Adam Bandt Adam Paul Bandt (born 11 March 1972) is an Australian politician and former industrial lawyer who is the leader of the Australian Greens and federal MP for Melbourne. Previously, he served as co-deputy leader of the Greens from 2012 to 2015 and ...

. The

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Coalition Opposition opposed the bill. The bill proceeded to the Senate, with Family First Senator

Steve Fielding Steven Fielding (born 17 October 1960) is a former Australian senator for the state of Victoria and the former federal parliamentary leader of the Family First Party. He was elected to the upper house at the 2004 federal election on two per ...

and independent

Nick Xenophon Nick Xenophon ( Nicholas Xenophou; born 29 January 1959) is an Australian politician and lawyer who was a Senator for South Australia from 2008 to 2017. He was the leader of two political parties: Nick Xenophon Team federally, and Nick Xenophon ...

supporting the proposal. Under a deal with Senator Xenophon, the government rewrote the terms of the Natural Disaster Relief and Recovery Arrangements to ensure state and territory governments take out disaster insurance, or establish an equivalent fund.

Measures for delivering funding

The Gillard Government delivered the funding primarily through spending cuts, which raised approximately $2.8 billion. The Government cut green programs such as the Green Car Innovation Fund, and the Cleaner Car Rebate Scheme. A further $1 billion was raised by delaying major infrastructure projects around Australia. The last $1.8 billion was raised by funds received through the flood recovery levy. This levy did not apply to anyone directly affected by the disaster.

References

{{Reflist # https://web.archive.org/web/20110131184352/http://www.pm.gov.au/press-office/rebuilding-after-floods # https://web.archive.org/web/20110216151222/http://www.alp.org.au/agenda/flood-recovery/flood-levy-facts/ # https://web.archive.org/web/20110216150814/http://www.alp.org.au/agenda/flood-recovery/ # http://www.theaustralian.com.au/national-affairs/gillards-flood-and-cyclone-levy-wins-vote/story-fn59niix-1226026374142

Political history of Australia 2010–2011 Queensland floods Income tax in Australia History of taxation in Australia