At the end of June and early July the ATO wrote to those taxpayers they believe to be exempt from the flood levy. The letters served two (2) purposes:
- to let people know they are exempt from the levy
- provide information as to how to let your employer know if you are exempt
The flood levy potentially affects anyone earning over $50,000 per year. Those who earn between $50,000 and $100,000 will pay 0.5% for reach $1 over $50,000 while those earning over $100,000 will pay $250 plus 1% for each $1 over $100,000.
So what do you need to 2 if you did receive an exemption notification?
Well, you have two (2) choices:
- do nothing which will more than likely result in your employer withholding more tax from your wage than necessary
- complete the form included with the notification and return it to your employer who will then reduce the amount of tax they withhold each pay period.
Ultimately, regardless of which option you fell is best for you, the ATO should recognise your entitlement to the exemption when processing your 2012 income tax return.