Fielding backs Labor's flood levy

The federal government has won over a key crossbench senator to its planned floods levy.

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Family First's Steve Fielding had secured a $500 million deal to help flood victims in his home state.

"That's in exchange for our vote on the flood levy," his spokesman told AAP on Monday, adding that it was irresponsible to keep flood victims waiting any longer.

But Labor needs more than Senator Fielding's support to win a vote in the Senate.

Independent senator Nick Xenophon and the Australian Greens are still uncommitted to the $1.8 billion levy.

Senator Xenophon is in Canberra on Monday, but a meeting with Prime Minister Julia Gillard has not been scheduled.

As part of the negotiations, the South Australian wants the commonwealth to compel state governments to take out disaster insurance.

He also wants a uniform national insurance scheme.

The Greens are in favour of the levy in principle but are yet to declare their support because they have misgivings about cuts to climate programs.

That leaves the levy's fate up to three lower house independents.

Tony Windsor has indicated he is leaning against the levy while Rob Oakeshott and Andrew Wilkie are yet to formally declare a position.

Bob Katter, an independent who hails from flood-affected north Queensland, is backing the levy along with West Australian Nationals MP Tony Crook.

The coalition has campaigned against the government's proposal to raise funds from taxpayers earning more than $50,000.

Flood victims would be exempt.


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Source: AAP


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