Tax on savings to be slashed

The rate of tax on bank deposit savings is likely to be cut as the government seeks to build a national savings base outside superannuation.

The former chief executive of Westpac and current director of BHP Billiton, David Morgan, told the ASFA superannuation conference in Melbourne last week that the government would seek to end the preferential treatment of superannuation savings over ordinary bank deposits.

Banks are also believed to be lobbying the government for assistance in building up savings from retail deposits.

The Henry review into taxation is due to report to the government in December.

Source: Sydney Morning Herald