The Government announced that it will not proceed with the 2010-11 Budget announcement for a 50% discount for interest income which was due to commence on 1 July 2013.
The Government said its public consultation process involving key sector groups, industry participants and consumer groups “revealed concerns with the complexity involved in calculating the discount and its overall effectiveness”. Based on this feedback from industry and stakeholders, the Government decided not to proceed with this measure.
The Government expects the discontinuance of the discount will provide savings to the Budget of $923.5m over the forward estimates period.
Source: Budget Paper No 2 [p 35]
[WTB 19, 8/5]