The federal government will impose a one-off flood levy of 0.5 per cent for middle-income earners, Prime Minister Julia Gillard says.
A levy of 0.5 per cent will be applied on taxable income between $50,001 and $100,000 and a levy of 1 per cent will be applied on taxable income above $100,000.
"Anyone earning under $50,000 will not pay the levy," Ms Gillard told the National Press Club.
"In other words it is not like the Medicare levy, which for most taxpayers applies to all their income - it is like income tax rates which apply only above certain income levels."
Someone who earns an income of $60,000 will pay just under $1 extra a week under the levy, Ms Gillard said.
"A person earning $100,000 per year will pay just under an extra $5 per week," she said.
The levy would apply only in the 2011-12 financial year and was expected to raise $1.8 billion, she said.
"People who were affected by the floods will not pay this levy.
"Anyone who receives the Australian Government Disaster Recovery Payment for a flood this financial year will be exempt.
"And importantly, this levy is completely separate from donations."
What you will pay a week
$50,000 - nil
$55,000 - 48 cents
$60,000 - 96 cents
$65,000 - $1.44
$70,000 - $1.92
$75,000 - $2.40
$80,000 - $2.88
$90,000 - $3.85
$100,000 - $4.81
$110,000 - $6.73
$120,000 - $8.65
$130,000 - $10.58
$140,000 - $12.50
$150,000 - $14.42
$160,000 - $16.35
$170,000 - $18.27
$180,000 - $20.19
$200,000 - $24.04
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