By taxconnect on
Tuesday, July 12, 2011
Assistant Treasurer Bill Shorten today released a discussion paper outlining the Government’s proposed approach to introducing a 50 per cent tax discount for interest income, as announced in the 2010-11 Budget.
"The introduction of the discount will benefit more than five million taxpayers, with particular benefits for low- and middle-income savers who are more likely to put their savings into banks, credit unions or building societies, rather than investments," Mr Shorten said.
"A tax discount for interest income is an important step towards a more consistent taxation regime for savings."
In 2012-13, individuals will be entitled to a tax discount equal to 50 per cent on up to $500 of interest income received.