Following the floods across Australia and cyclone Yasi in Queensland, the Government introduced a temporary Flood Levy to raise money to help rebuild devastated areas and assist affected communities. The Flood Levy will only apply from 1 July 2011 to 30 June 2012.

The levy will also apply to super withdrawals (where paid in cash) made during 2011-12. Generally speaking, you may have the Flood Levy deducted from any cash payments made to you by AvSuper if you:

  • are under 60 and receive an income stream
  • are under 60 and take a cash amount from your super account
  • receive a super payment on compassionate release or hardship grounds
  • receive a disablement benefit (including any insurance component) from AvSuper

Note that payment of a death benefit to a non-dependant beneficiary or your estate may also incur the Flood Levy.

The levy will generally not apply if

  • you are taking a cash amount less than $200
  • you are over 60
  • you are taking a terminally ill payment
  • you are rolling over money between super funds

The Flood Levy will generally affect people earning more than $50,000 pa – however those in flood affected areas can apply for an exemption at the time of receiving their payment.

*Note that the levy will apply to your total income for the year, including these super withdrawals, so a shortfall may be part of your tax return as AvSuper will only make deductions based on each super withdrawal made during the year.

Live Chat Support Software

Phone 1800 805 088 (Free call)
Email:
avsinfo@avsuper.com.au