The Australian government issued a press release stating that the estimated cost of rebuilding infrastructure in Queensland will be around $5.6 billion.

As stated in the press release, the funds will be made available via spending cuts ($2.8 billion), delaying infrastructure projects ($1 billion)  and a taypayer levy ($1.8 billion).

The taypayer levy will be payable by those taxpayers with income over $50,000. Those people that were affected by the floods will be exempt from paying the levy. The taxpayer levy is proposed for the 2011-2012 tax year.

There has been an outcry in the community about “another tax” by the labour government to pay for the repairs. The NSW state government have also requested relief from the levy as many taxpayers in NSW are already under strain from high living costs (mortgages, petrol, food etc.). We may see some changes to this proposed legislation before it is introduced.

To view the press release, see: Press Release: Rebuilding after the floods