The flood levy was a temporary reconstruction tax that funded the reconstruction of affected parts of

Queensland Queensland ( , commonly abbreviated as Qld) is a States and territories of Australia, state in northeastern Australia, and is the second-largest and third-most populous state in Australia. It is bordered by the Northern Territory, South Austr ...

, Australia, following the

2010–2011 Queensland floods A series of floods hit Queensland, Australia, beginning in December 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 A ...

. 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 The Queensland Government is the state government of Queensland, Australia, a Parliament, parliamentary constitutional monarchy. Government is formed by the party or coalition that has gained a majority in the Queensland Legislative Assembly, ...

, concluded that the

Australian Government The Australian Government, also known as the Commonwealth Government or simply as the federal government, is the national executive government of Australia, a federal parliamentary constitutional monarchy. The executive consists of the pr ...

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 bicameralism, bicameral Parliament of Australia, the upper house being the Australian Senate, Senate. Its composition and powers are set out in Chapter I of the Constitution of Australia. ...

with government support by

Andrew Wilkie Andrew Damien Wilkie (born 8 November 1961) is an Australian politician and independent federal member for Division of Clark, Clark (previously Division of Denison, Denison). Before entering politics Wilkie was an infantry officer in the Austr ...

Bob Katter Robert Bellarmine Carl Katter (born 22 May 1945) is an Australian politician who has served as the member of parliament (MP) for the Queensland division of Division of Kennedy, Kennedy since 1993 and Father of the Australian House of Represent ...

, Tony Crook, and

Adam Bandt Adam Paul Bandt (born 11 March 1972) is an Australian former politician and industrial lawyer who was the leader of the Australian Greens from 2020 to 2025. He previously served as the member of parliament (MP) for the Victoria (state), Victori ...

. The Liberal/

National National may refer to: Common uses * Nation or country ** Nationality – a ''national'' is a person who is subject to a nation, regardless of whether the person has full rights as a citizen Places in the United States * National, Maryland, c ...

Coalition Opposition opposed the bill. The bill proceeded to the

Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...

, 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 lawyer and former politician who was a Australian Senate, Senator for South Australia from 2008 until 2017. As a centrist, populist, independent politician, he twice sh ...

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