Flood Levy

Flood levy is imposed only for financial year 2012 to provide assistance to affected communities by the natural disaster. This is a once-off levy. There will be no flood levy in financial year 2013 as recently announced in the 2012-2013 federal budget.

You may be exempt from flood levy if you:-

• have taxable income of $50,000 or less; or
• were affected by a declared natural disaster (see below).

The flood levy rate is as follows:-

Taxable Income	Flood Levy
<$50,000	Nil
$50,001 – $100,000	0.5% of each dollar above $50,000
> $100,001	$250 + 1% of each dollar above $100,000

Net Medical Expenses tax offset

The high income earners are facing the increased premium to the private health insurance now they will face a lower tax offset available to them under the net medical expenses.

For the 2011 year, the tax offset is 20% of the net medical expenses in excess of $2000

For the 2012 year, the tax offset is 20% of the net medical expenses in excess of $2060

Effective from 1 July 2012, the tax offset will be different for those whose adjusted income is above the Medicare Levy Surcharge threshold ($84,000 for singles and $168,000 for families for 2012-2013 year) and below.

For those above the threshold, the tax offset will be 10% of the $5000. People below the threshold will be unaffected.