CANBERRA, Australia — The Australian government has proposed a tax to partially recoup the estimated $5 billion it expects to spend on rebuilding after major flooding.
Prime Minister Julia Gillard announced today the temporary tax would apply to Australians on above- average incomes from July and raise about $1.8 billion to pay for massive destruction from weeks of flooding along the east coast that is continuing farther south.
But the new tax will need the support of independent lawmakers to become law when legislation is introduced to Parliament next month. The main opposition party opposes it.
Initial estimates of the damage bill and cost of emergency grants to flood-affected communities for the federal government is nearly $5.6 billion.
The Associated Press
