The Flood Levy is a temporary reconstruction tax that will fund the reconstruction of Queensland, Australia, following the 2010-2011 Queensland Floods. The proposal passed Parliament on 22 March 2011. This levy will apply to everyone who has a taxable income of more than $50,000 a year, and will come into effect from 1 July 2011. Preliminary estimates, following consultation with the Queensland Government, have concluded that the Commonwealth Government will have to invest in $5.6 billion, in rebuilding flood-affected regions. Two thirds of that price will be 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

Australian House of Representatives

The House of Representatives is one of the two houses of the Parliament of Australia; it is the lower house; the upper house is the Senate. Members of Parliament serve for terms of approximately three years....

 with government support by Andrew Wilkie

Andrew Wilkie

Andrew Damien Wilkie is an Australian politician and independent federal member for Denison...

, Bob Katter

Bob Katter

Robert Carl "Bob" Katter is an Australian federal politician, a member of the Australian House of Representatives since March 1993 for the Division of Kennedy, and the leader of Katter's Australian Party...

, Tony Crook

Tony Crook

Anthony Crook is a former racing driver from England. He was born in Manchester. He participated in 2 World Championship Formula One Grands Prix, debuting on 19 July 1952. He scored no championship points. He also participated in several non-Championship Formula One races...

, and Adam Bandt

Adam Bandt

Adam Paul Bandt is an Australian politician and former industrial lawyer. Bandt was elected to the Australian House of Representatives in the 2010 Australian federal election for the Division of Melbourne...

. The Liberal

Liberal Party of Australia

The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...

/National

National Party of Australia

The National Party of Australia is an Australian political party.Traditionally representing graziers, farmers and rural voters generally, it began as the The Country Party, but adopted the name The National Country Party in 1975, changed to The National Party of Australia in 1982. The party is...

 Coalition Opposition opposed the bill. The bill proceeded to the Senate, with Family First

Family First Party

The Family First Party is a socially conservative minor political party in Australia. It has two members in the South Australian Legislative Council...

 Senator Steve Fielding

Steve Fielding

Steven "Steve" Fielding , was a Senator representing the state of Victoria and the federal parliamentary leader of the Family First Party in Australia. Elected to the Senate at the 2004 federal election on two percent of the Victorian vote, he failed to gain re-election at the 2010 federal election...

 and independent Nick Xenophon

Nick Xenophon

Nicholas "Nick" Xenophon is a South Australian barrister, anti-gambling campaigner and politician. He attended Prince Alfred College, and studied law at the University of Adelaide, attaining his Bachelor of Laws in 1981. Xenophon established and became principal of his own law firm, Xenophon & Co....

supporting the proposal. Under a deal with Senator Xenophon, the government will rewrite 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 plans to deliver the funding primarily through spending cuts, which will raise approximately $2.8 billion. The Government will cut green programs such as the Green Car Innovation Fund, the Cleaner Car Rebate Scheme, and other programs. A further $1 billion will be raised through delaying major infrastructure projects around Australia. While the last $1.8 billion will be raised by funds received through the flood recovery levy. This levy does not apply to anyone directly affected by the disaster.