Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1)

Administered by Department of the Treasury

Legislation au F2012L01017 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1)

Issued by authority of the Treasurer

Income Tax (Transitional Provisions) Act 1997

Subsection 4-10(2) of the Income Tax (Transitional Provisions) Act 1997 provides for the Minister to make a legislative instrument for the purpose of exempting classes of individuals from the temporary flood and cyclone reconstruction levy (levy). 

The Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) amends the eligibility criteria of the classes of individuals who are exempt from the levy as provided for in the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011.

The Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011 defines the classes of individuals exempt from the levy as: persons who received an Australian Government Disaster Recovery Payment (AGDRP) for a disaster event in 2010-11; those directly affected by a Natural Disaster Relief and Recovery Arrangements (NDRRA) declared disaster in 2010-11 and would have met the AGDRP criteria; and New Zealand non‑protected special category visa holders who received an ex-gratia payment from the Australian Government in relation to a disaster that occurred in 2010-11. 

The Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) amends the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011 to expand the eligibility criteria for the class of individuals who are eligible for a levy exemption to those affected by disasters in the 2011-12 financial year. The amendments will also provide for those who were eligible for an AGDRP but did not claim one, to be able to self-assess themselves exempt from the levy against the criteria set out under subitem 2.

In relation to the third class of individuals who are exempt from the levy, New Zealand citizens holding a special category visa who are not eligible for an AGDRP, the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) extends the levy exemption to include those affected by disasters in the 2011-12 financial year.

This amending legislative instrument was developed followed consultation internal to Government with the Australian Taxation Office, the Department of Human Services and the Attorney-General’s Department.  Due to the consideration of providing certainty for taxpayers in a timely manner following the recent flooding across Australia, no public consultation on the amendments set out in the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1). 

Details of the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) are as follows:

 

Schedule 1 – Classes of individuals who do not pay the temporary flood and cyclone reconstruction levy

 

Item 1 – Individuals eligible for an Australian Government Disaster Recovery Payment

A class of individuals is eligible for a levy exemption where they are eligible for an Australian Government Disaster Recovery Payment (AGDRP) under Part 2.24 of the Social Security Act 1991 in the 2010-11 or 2011-12 financial years.

Prior to this amendment, only individuals who received an AGDRP for a natural disaster in the 2010-11 financial year were eligible for an exemption from the levy. 

This amendment expands the time period eligibility criteria within which an AGDRP declared natural disaster occurs for the class of individuals to be exempt from the levy from the 2010-11 financial year to also include the 2011‑12 financial year.

Item 2 – Individuals affected by a natural disaster declared under the Natural Disaster Relief and Recovery Arrangements 

Prior to this amendment, the class of individuals who were affected by a declared natural disaster for the purposes of the Natural Disaster Relief and Recovery Arrangements (NDRRA) as a result of a natural disaster that occurred only during the 2010‑11 financial year were eligible for an exemption from the levy.

This amendment expands the time period eligibility criteria within which an NDRRA declared natural disaster occurs for the class of individuals to be exempt from the levy from the 2010-11 financial year to also include the 2011‑12 financial year.

The amendment also provides that for those who were eligible for an AGDRP but chose not to receive it will also be exempt from the levy.  This operates by the person self-assessing against the criteria set out in item 2 as the AGDRP declared areas are a subset of the NDRRA areas declared in 2010-11 and 2011-12.   

Item 3 – New Zealand citizens holding a special category visa who are not eligible for Australian Government Disaster Recovery Payment 

The class of individuals who are non‑protected New Zealand special category visa holders who received an ex-gratia payment from the Australian Government in relation to a disaster that occurred in 2010-11 are exempt from the levy if an income tax return lodged in at least one of the 2007-08, 2008-09 or 2009-10 income years to be exempt from the levy. 

This amendment adds to the exemption criteria the class of individuals who are non‑protected New Zealand special category visa holders an exemption from the levy when they are affected by a natural disaster that occurred in the 2011-12 income year.  To be eligible for the levy exemption, an income tax return must have been lodged in one of the 2008‑09, 2009‑10 or 2010‑11 income years. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) was enacted by the Australian Government to provide relief to individuals affected by natural disasters in the 2011-12 financial year, expanding the eligibility criteria for the temporary flood and cyclone reconstruction levy exemptions. This legislative instrument amends the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011 by the Minister for Finance under subsection 4-10(2) of the Income Tax (Transitional Provisions) Act 1997. The objective of this determination is to provide certainty and support to taxpayers impacted by recent natural disasters, ensuring they are exempt from the temporary levy. The amendments were developed following internal government consultations and implemented without public consultation due to the urgent need to assist affected individuals. The determination extends the levy exemption to include those affected by natural disasters in the 2011-12 financial year, as well as those who were eligible for an Australian Government Disaster Recovery Payment but did not claim it, allowing them to self-assess their eligibility.

Scope and Application

The Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) amends the eligibility criteria of the classes of individuals who are exempt from the temporary flood and cyclone reconstruction levy, thereby impacting tax obligations for those affected by natural disasters in specified financial years. This amendment applies to individuals who received an Australian Government Disaster Recovery Payment (AGDRP) or were directly affected by a Natural Disaster Relief and Recovery Arrangements (NDRRA) declared disaster in the 2010-11 and 2011-12 financial years. Additionally, it extends the exemption to New Zealand non-protected special category visa holders affected by disasters in these years, provided they lodged an income tax return in one of the preceding financial years. This legislative instrument was issued under the authority of the Treasurer, in accordance with the Income Tax (Transitional Provisions) Act 1997, and no public consultation was conducted due to the urgency of providing relief to disaster-affected taxpayers. The amendment serves to clarify and expand the eligibility criteria for levy exemptions, ensuring that affected individuals are appropriately recognized and relieved from the specified tax obligations.

Key Provisions

The main sections of the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1) focus on altering the eligibility criteria for individuals exempt from the temporary flood and cyclone reconstruction levy. These changes expand the time period within which certain individuals can claim an exemption from the levy, now covering both the 2010-11 and 2011-12 financial years. For instance, individuals who were eligible for an Australian Government Disaster Recovery Payment (AGDRP) for natural disasters occurring in these financial years, or those directly affected by a declared natural disaster under the Natural Disaster Relief and Recovery Arrangements (NDRRA) in these years, can now claim exemption from the levy. Additionally, the amendment includes New Zealand non-protected special category visa holders who received an ex-gratia payment from the Australian Government in relation to a disaster that occurred in either of these financial years. The Act imposes certain obligations on the individuals who are eligible for the levy exemption. These individuals must self-assess their eligibility against the criteria set out in the amended determination. For instance, those who were eligible for an AGDRP but did not claim it can self-assess their eligibility based on the criteria for NDRRA declared areas. New Zealand citizens holding a special category visa, who are not eligible for an AGDRP, must ensure that they have lodged an income tax return in one of the specified income years to qualify for the exemption. These obligations ensure that only those genuinely affected by the natural disasters and meeting the specified criteria can claim the exemption. In terms of penalties and consequences, the determination itself does not explicitly state penalties for non-compliance or incorrect self-assessment. However, given that the levy is an income tax matter, any incorrect self-assessment that results in an improper exemption could lead to tax-related penalties. Such penalties could include fines, additional tax assessments, and interest on unpaid taxes, as governed by the general provisions of the Income Tax Assessment Act 1997. It is important for affected individuals to accurately self-assess their eligibility to avoid potential tax-related repercussions.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.