Big banks call for tax breaks for savers

Australia’s big banks want the government to give their customers tax breaks on interest income, having told the Financial Systems Inquiry it would encourage more savings.

The 2010 Henry Tax Review recommended that income tax treatment of household savings could be improved by applying a 40% discount to most interest income.

A 40% discount on tax payable on interest would place the taxpayer in a position where the return on their investment would be adjusted for the effects of inflation.

Source: The Conversation