Thousands of employees, small business persons and farmers who lost income as a result of the floods may be subject to Julia Gillard’s Flood Tax.

“Julia Gillard must guarantee that the tens of thousands of employees, small business persons and farmers who are receiving the Disaster Income Recovery Subsidy do not pay her Flood Tax,” said Senator Ryan.

While the Flood Tax does not apply to those who have received an Australian Government Disaster Recovery Payment, the government made no such exemption for those receiving the Disaster Income Recovery Subsidy.

The Australian Government Disaster Recovery Payment provides $1,000 per eligible adult and $400 per eligible child.

The Disaster Income Recovery Subsidy provides ex-gratia payments equivalent to the maximum rate of the Newstart Allowance.

As at midnight 23 January, 23,466 claims under the Disaster Income Recovery Subsidy had been granted, worth well over $10 million, to flood victims across the country.

“It appears that the Gillard Government has dumped a new tax on the shoulders of the very people it is supposed to be helping,” Senator Ryan said.

“Julia Gillard needs to clarify that recipients of the Disaster Income Recovery Subsidy, who have already suffered enough from the floods, will not suffer from her new tax and be exempted like those receiving the disaster recovery payment,” said Senator Ryan.

Julia Gillard promised that she would ensure that “the levy will not be paid by those affected by the floods” – right now, that claim appears to be false.

For background:

Link to Disaster Recovery Payment:
http://www.centrelink.gov.au/internet/internet.nsf/payments/disaster_eligible.htm

Link to Disaster Income Recovery Subsidy
http://www.centrelink.gov.au/internet/internet.nsf/emergency/severe_weather_dec10_dirs.htm

Guidelines for flood levy:
http://www.pm.gov.au/sites/default/files/attachment3_rebuilding_floods.pdf