Authorities consider recovery levy
The government is mulling over the possibility of charging a national levy on taxpayers to pay for the costs to rebuild Queensland according to Prime Minister Julia Gillard.
The government has a target goal of returning the budget to surplus by 2010-13 and the extensive damage brought about by the Queensland floods threatens this. Ms. Gillard confirmed they will looking into spending cuts but adding that the National Broadband Network plans will still push through.
Sources estimate that the cost of rebuilding Queensland might reach more than $10 billion.
By 2012-13 our economy will be running hot, and when your economy's running hot, that's the right time to be having a budget surplus and saving for the future," she told ABC."There will be spending cutbacks and there might also be a levy. We are obviously working on those decisions now, as we work with our Queensland colleagues to clarify the bill for infrastructure rebuilding."
Opposition is calling that expenses incurred for the Queensland recovery be charged from savings."Surely the last thing they need on top of this attack from Mother Nature is a fiscal attack from government," Tony Abbott told radio 2GB in Sydney.
Others are also considering charging a national natural disaster levy that would cover costs of repairing damage from natural disaster like bushfires, mudslides, hailstorms, earthquakes and cyclones.
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