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Government sets out to sell its levy plan

The federal government is attempting to sell its flood levy proposal to the public and independent MPs, with no guarantee it will get through parliament.

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Source: AAP


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The federal government will attempt to sell its flood levy proposal to both the Australian public and independent MPs on Friday, with no certainty it will get through parliament.

Independent MPs say their support may depend on the introduction of a permanent natural emergency fund, while Opposition Leader Tony Abbott believes no-one should have to spring for the one-off levy, which will cost 0.5 per cent of income over $50,000 and one per cent of earnings over $100,000.

Mr Abbott says people who should not foot the bill - including many who helped clean up and businesses that did not qualify for assistance - will end up paying through the levy.

The opposition leader says there is more "fat" in the budget on which the government should draw.

Greens deputy leader Christine Milne says her party is open to a levy, but will not support cuts to climate change programs, foreshadowed by Prime Minister Julia Gillard in announcing the levy on Thursday.

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Independent Tony Windsor says he will be arguing the case for a natural disaster fund in coming negotiations with the government, while independent MP Bob Katter says a permanent fund must be established or the government will not get his vote.

Of the other independents, Rob Oakeshott also supports a natural disaster fund while Andrew Wilkie and Senator Nick Xenophon have reserved their decision.


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