This is a one-off levy to raise essential funds for the reconstruction of essential infrastructure in Queensland. It will help the government to avoid a budget deficit, and it is being used in conjunction with a range of cost-cutting measures, including the scrapping or delaying of expensive non-essential policies.
The levy itself is hilariously low; people with an income of $50,000 will pay $1 dollar extra per week for 12 months. I defy anyone to tell me they can't afford that.
Australia's previous government (a conservative government, no less!) introduced 6 different levies during its time in office, even when the budget was in surplus. Every single one of those levies was larger than the flood levy.
This is a complete non-issue. People will rage about it because they don't like the idea of the government taking more money, but once the reality sinks in, they'll realise they were massively over-reacting. We saw exactly the same thing when John Howard introduced the GST. Huge outcry followed by a nationwide scare campaign, and then... people just got on with their lives.
It's not just the amount of money, which seems to vary between $1-$20 per month (depending where you sit on a 50k-100k range). It's the principle that is being debated. It's also more expensive for those that earn 100k+. Someone who earns 1m would be $750 per month for example.
More than $120 million has already been raised via charitable donations and additional funding from state and federal government. But with reconstruction due to cost ~$5 billion, that's nowhere near enough. Damage to Queensland was immense. The flooding covered an area larger than France and Germany combined. We are not talking about the little puddles you get in the UK.
I mentioned in an earlier post that the 2008/2009 foreign aid budget of .au was almost $5billion. They could cut their 2011/12 budget for example (I would guess would be the same) and divert the funds to their own need for aid.




