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Levy will not be extended: Gillard

The federal government is reassuring taxpayers its new flood levy won't be extended beyond a year, and said cutting the NBN to pay for rebuilding is not an option.

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The federal government is reassuring taxpayers its new flood levy won't be extended beyond a year.

Prime Minister Julia Gillard has begun the hard sell of the levy which will see most taxpayers paying between $1 and $5 a week to rebuild flood-affected areas.

"This is a temporary one-off levy. It will be there for 12 months and that is all," Ms Gillard said on ABC Radio on Friday.

"If we need to find more money then we will do that through further budget cuts."

The unprecedented scale of the flood disaster required a mix of measures to pay for reconstruction, she said.

Ms Gillard said she disagreed with economists and commentators who believe the government should instead borrow more and wear a deficit.

"With an economy that will be running near full capacity in 2012-13 we've got to manage demand," she said.

"Part of managing demand is to reduce the government's footprint on the economy.

"That's what having a budget surplus is all about.

"And if we don't get that right than we put upwards pressure on inflation and interest rates."

NBN 'an investment'

The Prime Minister has also said the National Broadband Network is here to stay.

"The national broadband network is an investment we have made that is going to pay a return to taxpayers," Ms Gillard said.

"It is not money in the government budget that can be reallocated from the NBN to another purpose. That's not the way it works, it's an investment."

She said major infrastructure like the NBN was pivotal to maintaining a strong economy.

Regional communities hit badly by the flood will also benefit from the scheme, she said.

"When we look at what's happened in Queensland so much of the burden has been borne by regional centres in Queensland," Ms Gillard said.

"They're exactly the places and exactly the local economy that will benefit from the NBN.

"I'm not prepared to rob them of that."

Permanent disaster fund

Independent MPs say their support for the government's flood funding package, which also includes budget cuts, may hinge on the introduction of a permanent disaster relief fund - something Ms Gillard has declined to rule out.

Asked if she believed climate change caused the floods, Ms Gillard said: "I don't think you can look at one bit of the weather and say that equals climate change.

"I don't think it's as simple as that.

"But having said that of course I do believe that climate change is real and is going to impact on our country."

Opposition Leader Tony Abbott says he believes the federal government's floods levy could easily become permanent.

"This is just the beginning," he told the Nine Network on Friday.

"This is also the year when the government is going to hit us with the mining tax.

"This is the year when they're going to hit us with a carbon tax.

"This is a government that sees a problem and thinks tax and it just never stops."

Mr Abbott said he also did not support a permanent disaster relief fund.

"The best permanent relief fund is a strong surplus and that's why it's so important for governments to maintain a surplus," he said.

"That's why this government has been so irresponsible at turning the $20 billion surplus it inherited into a $50 billion-plus deficit."


4 min read

Published

Updated

Source: AAP


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