The Government has introduced a Flood Levy to assist affected communities recover from the recent floods and rebuild essential infrastructure.

ESSSuper is required to charge the Flood Levy, effective 7 July 2011, on pensions where the:

1. taxable pension is greater than $50,000 per annum, or
2. pension member has not made an application for general taxation exemption.

It applies to tax payers with taxable incomes over $50,000 as follows:

Taxable Income	Flood Levy on this income
$0 - $50,000	Nil
$50,001 - $100,000	Half a cent for each $1 over $50,000
Over $100,000	$250 plus 1 cent for each $1 over $100,000

 

What does this mean for my super?

Your super is only affected by the Flood Levy if you receive a lump sum payment or a pension/income stream payment for the 2011/12 financial year.

How will the levy be collected from my pension/income stream payments?

For members receiving income stream payments, only the taxable portion of your pension will count towards the calculation of your Flood Levy. This generally only applies to members less than 60 years of age.

The amount of tax deducted from your regular income stream payment will be adjusted to include the Flood Levy.

How will the levy be collected from my lump sum payment

• At the time the payment is made, ESSSuper will calculate the amount of Flood Levy that is payable based on the table shown above.
• For Beneficiary Account members, if your payment is being made from your untaxed ‘optional’ benefit, the Flood Levy will be applied to any lump sum payments you receive from your Beneficiary Account regardless of your age.
• Please note, for the purpose of the Flood Levy, the $165,000 which is usually ‘tax free’ when you take a lump sum from your super, is counted as taxable income. 

Exemptions from the Flood Levy

You may be exempt from the Flood Levy if you have been affected by a natural disaster.  To apply for an exemption you should refer to “Flood levy information for individuals” on the ATO website.

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