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Businesses – New Tax Tables start from July – Include Flood and Cyclone Levy

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The Federal Government has introduced a temporary flood and cyclone reconstruction levy (the Flood levy for the 2011-12 tax year only). Individual payees, who have a taxable income over $50,000, will have to pay the flood levy.
The flood levy is included in the new Withholding tax tables that will be published on the ATO website from late June.
Some payees may be exempt from paying the flood levy. If a payee is entitled to claim the exemption they will need to complete the Flood levy exemption declaration (NAT 73797). Tax tables for payees who are exempt from paying the Flood levy will also be available from late June.
To obtain paper copies of tax tables or the Flood levy exemption declaration (NAT 73797), you can obtain them from 1 July:

  • from most newsagents
  • from ATO shopfronts
  • by phoning the self-help publication hotline on 1300 720 092.

For more information go to www.ato.gov.au/floodlevy
For the PAYG withholding tax tables, go to www.ato.gov.au/taxtables

Debate on the Flood Levy –

David Donovan commented – “since the impact on the economy and taxpayers will be so negligible, there is also no pressing economic reason for the Opposition to oppose it.” More http://www.independentaustralia.net/2011/politics/the-flood-levy-debate-pointless-partisan-politics/

Bernard Keane said the “argument for a flood recovery was that it was critical to ensuring the recovery effort doesn’t drive inflation and skill shortages as rebuilding infrastructure competes with a booming economy. There are plenty of economists, and good ones too, who aren’t quite as convinced as the Government that the flood recovery effort will be battling a surging economy.” See http://www.crikey.com.au/2011/01/28/sorry-but-opposing-the-flood-levy-is-not-a-moral-failing/

Management Line in the Sydney Morning Herald has a great summary of comments and viewpoints – “The levy has been slammed by the Opposition, with Treasury spokesman Joe Hockey saying the government should cut spending instead of imposing a levy. “[The] Gillard government [is] looking to impose a tax on carbon, it is imposing a tax on mining, if you are going to have another tax on floods then it is too much,” Hockey said.
Read more: http://www.smh.com.au/executive-style/management/blogs/management-line/should-there-be-a-flood-levy-20110130-1a96o.html#ixzz1Q6AWkBXd

What are your thoughts?

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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