Government Deferral or Backflip!

As part of the Government's Mid-Year Economic and Fiscal Outlook for 2010/11, it has stated that the commencement of the 50% tax discount for interest income announced in the 2010/11 Budget will be deferred by 12 months, and the cap on interest income that is eligible for the discount will be lowered in its first 12 months of operation.

Under the revised measure, the Government will provide individuals with a 50% tax discount on up to $500 of interest income received in 2012/13, and up to $1,000 of interest income received each year from 1 July 2013.