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.

Phone 1300 128 751 (Local call)
Email:
avsinfo@avsuper.com.au