Private ruling: Flood levy
Published: June 2014
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you required to pay the Temporary Flood and Cyclone Reconstruction Levy (the flood levy)? | A1: Yes.


Relevant legislative provisions: Income Tax (Transitional Provisions) Act 1997 Section 4-10 Income Tax - Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011 Schedule 1

Reasons for decision: Summary: The Australian Government has introduced the flood levy for the financial year ended 30 June 2012. The flood levy is designed to assist affected communities to recover from the recent natural disasters by providing additional funding to rebuild essential infrastructure, such as, roads, bridges and schools. Subsection 4-10 (1) of the Income Tax (Transitional Provisions) Act 1997 states you must pay the flood levy where your taxable income for the 2011-12 financial year exceeds $50,000 unless you are covered by the exemption provision. Subsection 4-10(1) does not apply if you are a member of a class of individuals specified in a legislative instrument made by the Minister for the purposes of this subsection. Subsection 4-10(3) of the Transitional Provisions states: The Minister may only specify a class of individuals for the purposes of subsection (2) if the Minister is satisfied that the class was affected by a natural disaster that happened in Australia between: (a) 1 July 2010; and (b) 30 June 2012. While we accept that you may have been affected by the overseas disaster, the provisions relating to exemption to the flood levy only relate to a natural disaster that happened in Australia. Therefore, as your income for the 2011-12 financial year was more than $50,000, you are not exempt from the flood levy because the natural disaster that affected you did not happen in Australia.

Relevant facts: You were living overseas during the 2011-12 financial year and were affected by a disaster in that country.