Prime Minister Julia Gillard announced on Monday her proposal for a one-off flood levy that would raise some $1.8 billion to help finance the reconstruction program in areas devastated by the flooding disaster.

The move, according to analysts, could endanger the Labor government's hold to power as the party relies on a precarious agreement with independent lawmakers to continue governing.

This early, independent MP Tony Windsor sounded off his distaste of the Ms Gillard's initiatives, suggesting instead that the government should look into the possibility of setting up a permanent disaster levy that could be utilised to deal with financing issues of future crises.

The government plan would also provide instant aid of $2 billion for reconstruction efforts to be undertaken in Queensland, which would be sourced from savings realised on spending cuts.

Ms Gillard said that the levy would only apply to those earning not less than $50,000 each year and will take effect in July 2011. The prime minister expressed optimism that the temporary tax payment would be welcomed by many as she stressed that "the great majority of Australians are ready to contribute, I have no doubt about that."

The measures have been introduced, still in line with the federal government's target of delivering a budget surplus by 2013. Estimates have emerged that up to $5.6 billion would be chipped away from the budget without the implementation of the levy and could derail Labor's pledge of a surplus in two years time.

That prospect, according to analysts, would be hardly acceptable for Ms Gillard who appears to give greater weight on setbacks to be created by failed budget surplus than the possible voters' backlash that could ensue due to higher taxes.

The government has been harping on the enormous tasks ahead of it because of the flood, with Finance Minister Penny Wong declaring on Thursday that "it is an extraordinary event and it requires an extraordinary response."

However, the Coalition re-affirmed its opposition to the tax proposal as shadow treasurer Joe Hockey argued that the additional levy would only add-up to the burden of Australians still reeling from the ill-effects of the disaster.

Hockey said that introducing the levy would be too much at this time amidst rising food prices and other form of taxes already in-placed and imposed by the Labor-led government.