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.
