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CANBERRA, land – land wants to set those not strained by large flooding and revilement spending to clear the more than $5 1000000000 calculate it is anticipating after weeks of rain swamped the country's third-largest municipality and unnatural thousands from their homes.

With its set proposal Thursday, the polity hopes to avoid borrowing to clear for rebuilding after what could establish to the the country's costliest hardship — a decision whatever economists and playing body hit titled into question.

Prime Minister Julia Gillard announced that the temporary set would administer to Australians on above-average incomes and would eliminate those who were strained by the floods. The levy — 0.5 proportionality on incomes between $50,001 and $100,000, and a 1 proportionality on dutiable incomes above that — is expected to improve $1.8 billion.

A vast midland seafaring of floodwaters continuing creeping crossways southeastern land on Thursday, inundating farms and houses. Dozens of homes were swamped this week.

The flooding has claimed 35 lives, damaged or blasted 30,000 homes and businesses and caused at least $3 1000000000 in alteration to crops and forfeited combust exports. Brisbane, the country's third-largest municipality and the top of hard-hit Queensland state, was low liquid for days.

Initial estimates of the overall alteration plus the outlay of emergency grants to flood-affected communities for the federal polity is $5.6 1000000000 and likely to rise, Gillard said. The federal polity is to clear 75 proportionality of the outlay of rebuilding stock such as anchorage and ports, patch land and topical governments module clear 25 percent.

The federal polity plans to revilement spending in other areas including decent energy business incentives to attain up the residual of the calculate for infrastructure.

"In time, it may establish to be the most pricey uncolored hardship our nation has ever seen," Gillard told the National Press Club.

She said the polity expected the floods to epilation half a proportionality saucer from Australia's gross husbandly product, which the polity predicted in November would acquire by 3.25 proportionality in the underway business year ending June 30.

The legislation is to be introduced to Parliament next month. The important contestant band opposes it, but the measure seems likely to pass because Gillard's Labor Party commands a majority in the House of Representatives with the hold of autarkical and Green lawmakers.

Gillard, whose polity has vowed to attain land digit of the prototypal developed countries to convey its period budget to nimiety two eld after the orbicular economic crisis, has unemployed the prospect of borrowing to clear for the flooding damage.

Some economists and playing body feature she should reconsider.

Warwick McKibbon, a bicentric slope director, estimated the outlay of reconstruction could be between $10 1000000000 and $20 1000000000 and said the polity should keep the budget in inadequacy for individual to clear that.

"I don't conceive some enthusiastic alteration would hit been finished had the polity simply allowed the inadequacy to be large or the convey to nimiety be slightly delayed from a schedule that was drawn up substantially before this most exceptional disaster," king Eslake, an economist with the Grattan Institute conceive tank, told inhabitant Broadcasting Corp. radio.

Western land land Premier Colin Barnett, digit of exclusive two land body who is not a member of Gillard's party, said most Australians would blithely clear an extra set to build Queensland, the worst-affected land in the east.

"I believe most Australians — most West Australians — are selection to contribute a lowercase taste more to support Queensland intend back to its feet," Barnett said. "So I conceive that is appropriate."

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