ACTU: Flood levy is fair

27 January, 2011 | ACTU Media Release

A progressive one-off levy exempting flood victims and the majority of workers to help cover the $5.6 billion cost of this summer's devastating floods and maintain existing Government policy priorities is only fair says ACTU President Ged Kearney.

The levy of 0.5 per cent will be applied from July 1 on taxable income between $50,001 and $100,000, and 1 per cent on incomes above $100,000.

The majority of workers (approximately 60%), including a large proportion of part time workers and those on low incomes will not have to pay the levy at all, said Ms Kearney.

“Up to 60% of workers will pay no levy at all. Those with incomes between $50,000 and $100,000 a year will pay a 0.5% levy on their marginal income, or up to $250.

“Less than 10% of workers will pay the higher rate of 1% on income above $100,000 a year.

“Considering the massive rebuilding effort that is now required it is only fair that those with the capacity to contribute are asked to pay a one-off levy. A progressive levy that exempts low income workers is one of the options the ACTU has been urging the Government consider.