Thursday, January 27, 2011

The Need For A Natural Disaster Levy



Jack Dikian
January 2011

Today, speaking at the National Press Club, Ms Gillard said the total cost of the recent floods disaster to the federal budget would be $5.6 billion and that the cost would be met by the levy and by cuts to government spending….The actual announcement, the inevitable analysis and political commentary is already in train and (rightly) no doubt will continue for some time further.

For me, the big surprise is not so much that a levy is necessary, but more so, how many other natural disasters is needed before a more comprehensive specific-disaster-independent levy is conceived and from time to time “topped up” as monies are released in support of almost certain to occur disasters in the future. The table below (sourced and adapted from Wikipedia) provides only a sample of disasters we have endured over the years.


Disaster

Location

Deaths

Date

Epidemic

Australia-wide

12,000+

1918–1919

Epidemic

Australia-wide

1,013

1946–1955

Epidemic

Australia-wide

550

1900–1910

Heat wave

Victoria

438

Dec 1938-Feb 1939

Heat wave

South-eastern Australia

437

1895–1896

Cyclone

Bathurst Bay, Queensland

410

4 March 1899

Heat wave

South-eastern Australia

374

25 January to 9 February 2009

Heat wave

Southern states

246

December 1907-January 1908

Bushfires

Victoria

173

February 2009

Heat waves

Australia-wide

147

1920–1921

Heat waves

Australia-wide

143+

1911–1912

Cyclone

Broome, Western Australia

141

March 1935

Cyclone

Eighty Mile Beach, Western Australia

140

1884

Heat wave

Southern states

130

1926–1927

Heat wave

Australia-wide

122+

1913–1914

Heat wave

Australia-wide

112

1939–1940

Heat wave

Australia-wide

109

1909–1910

Heat wave

Southern regions, Australia

105+

1959

Source: http://en.wikipedia.org/wiki/List_of_disasters_in_Australia_by_death_toll

History of levies

There is also a long history of levies being either touted and/or imposed for by both sides of government. It wasn't all that long ago, for example, during the federal election of 2010 that Tony Abbott argued for a special tax on big business to pay for generous parental leave provisions. Examples go back many many years. Consider:

Oct 1, 2001 - A $10 Levy is to apply to all tickets for scheduled passenger flights originating in Australia from 1 October 2001. Funds collected from the Levy would be used by the Commonwealth to guarantee payment of certain Ansett employee entitlements pending

May 17, 1976 - The proposed 2%, levy on personal income to help finance Medibank would not meet half the costs of the scheme, the president of the Voluntary Health Insurance Association of Australia, Mr. Keith Moon, said yesterday. He said the Federal Government would have to continue.

Sep 2, 1890 - The Dockers' Union has decided to take a levy on its members of one shilling per week in aid of the Australian strikers. ... The Bcene alongside the Australia last night was a very animated one. Lawyers, merchants, soft-goods men and storemen worked four-hour shifts at both hatches.


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