Great news for savers – NO New Taxes

The Government has dumped plans for a deposit tax to fund a Financial Claims Scheme.

The Prime Minister Tony Abbott said the deposit levy would have imposed costs of $1.5 billion on depositors. The levy would have damaged competition by putting regional and community banks at a disadvantage to the big banks said Mr Abbott.

The 0.5 per cent tax on government guaranteed deposits was scheduled to start in 2016. The Financial System Inquiry recommended that a Financial Claims Scheme to payout depositors of a failed bank be funded by the levy.

Source: Banking Day