Were you a little disappointed with your tax refund this year? If this is the case, then you are probably experiencing the wonder of the flood levy. Applying only to income earned in the 2011/12 year (at least that is the current plan) the levy adds between 0.5% and 1% to your normal tax rate, which in turn reduces the refund.

Remember:

• It only applies to income over $50k, so not everyone is affected.
• Additionally, if your worldly belongings floated away during the floods then the upside is that you are exempt from the levy.

More information is available here.