Australia floods: PM Julia Gillard unveils new tax
29 January BBC
Australia's Prime Minister Julia Gillard has announced a new tax to
help pay for devastating floods that she says will cost A$5.6bn ($5.6bn;
£3.5bn) in reconstruction.
Ms Gillard said the 12-month tax, starting from 1 July, would be
levied on those earning A$50,000 or more and those affected by floods
would not pay.
"We should not put off to tomorrow what we are able to do today',"
she said.
More than 30 people have been killed since flooding began last month.
Ms Gillard said: "The Treasury's preliminary estimates are that GDP
growth in this financial year will be about half a percentage point less
due to the floods.
"The best preliminary estimate of the direct cost to the federal
budget of the summer's flood disaster is A$5.6bn." Cost-cutting The new
tax will charge an extra 0.5% on those earning A$50,000-A$100,000 and 1%
more on those earning more than A$100,000.
Ms Gillard said that ''in a growing economy, we pay as we go" and
said deferring the costs was a "soft option" she was not prepared to
take.
Large parts of Queensland, the eastern seaboard and Victoria have
been inundated by flooding.
Agriculture, mining and transport infrastructure have been badly hit,
along with the massive damage to private homes. Ms Gillard said: ''The
great floods of this summer have been a national tragedy, not just a
natural disaster because of the awful loss of human life."
She said there would be an immediate payment from the federal
government of A$2bn to Queensland, the worst-hit state. Unemployed
Australians will be paid to move to Queensland.
Ms Gillard is also delaying or cutting infrastructure projects to
save about A$675m and cutting back on carbon abatement programmes to
save further costs.
However, Ms Gillard must get the tax through parliament and as she
relies on minor parties and independents in both houses, she faces a
tough task given that the main opposition is opposed to the levy.
The Greens said they supported the new tax but added that it "beggars
belief that the government would choose to cut climate change" measures.
|
