Federal Budget 2014: The debt levy and other levies you’ve paid in the past

THE Abbott Government is asking Australians to pay a deficit levy - but its not the first time our pockets have been raided. Here are the other levies you’ve paid.

THE Abbott Government is asking all Australians to help contribute to the budget repair job and will slap high income earners with a much talked about deficit tax.

It’s far from the first levy we’ve been asked to pay — with national “one-off” taxes reaping billions over the past two decades.

Tony Abbott has confirmed the Budget will include a debt levy for people earning more than $180,000.

Finance Minister Mathias Cormann last week argued the measure was the only way to spread the budget repair job fairly.

“Let me assure you and be very clear that any special effort before structural reforms and structural savings kick in will truly be temporary,” he said.

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Opposition Leader Bill Shorten has labelled it a “deceit tax”, but has refused to say whether his party would support the move in the Senate.

The Greens also want to see the detail before deciding whether or not they will try to block the measure.

Firing back ... Opposition Leader Bill Shorten has labelled the debt levy a “deceit tax”.

Shadow Treasurer Chris Bowen has previously defended levies Labor introduced in the past. The former Labor government brought in a “one-off” flood levy in a bid to help rebuild Queensland communities devastated by the costly natural disasters in 2010-11.

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Former Prime Minister Julia Gillard also decided to raise the Medicare Levy from this July, to help fund the rollout of the National Disability Insurance Scheme.

The debt tax won’t be the first time Coalition governments have turned to levies either.

Under John Howard, they were used to fund the famous gun buy back scheme and help pay for defence costs in East Timor.

Medicare levy (Labor):

Most taxpayers pay a levy of 1.5 per cent of their taxable income to help fund Medicare.

The Medicare levy is used as a base for other levies.

Gun buy back levy (Coalition):

In the wake of the 1996 Port Arthur massacre, former Prime Minister John Howard introduced a temporary increase to the Medicare levy.

The 0.2 per cent rise helped fund the government’s gun buy back program during the 1996-97 financial year, with owners of banned weapons compensated for handing in their firearms.

Violent end ... a 0.2 rise in the Medicare levy helped fund a gun buy back in the aftermath of the Port Arthur massacre.

East Timor Levy (Coalition):

To help offset Australia’s defence costs in East Timor the Howard Government introduced a 12 month levy in the 2000-01 financial year.

Those on more than $50,000 were stung with a 0.5 per cent levy, with 1 per cent for those on taxable incomes of more than $100,000.

Flood levy (Labor):

The Gillard Government brought in a one-off levy to help rebuild communities in the wake of devastating natural disasters which gripped Queensland in 2010-11.

It applied to taxable incomes of over $50,000 during the 2011-12 financial year but those affected by the disaster were exempt.

A helping hand ... Julia Gillard and Queensland Premier Anna Bligh wave to residents as they inspect a flooded neighbourhood in Bundaberg on December 31, 2010.

NDIS levy (Labor):

Julia Gillard last year announced her government would increase the Medicare levy to assist in funding the National Disability Insurance Scheme.

The 0.5 per cent rise comes into affect from July, with proceeds to go towards rolling out the policy.

Originally published as Federal Budget 2014: The debt levy and other levies you’ve paid in the past