A controversial bank deposit tax proposal has been dumped by federal government following criticisms the tax measure would not encourage bank customers to use wealth creation products. Bank deposit levy dumped.
Prime Minister Tony Abbott said the levy was a misguided tax on savings accounts rather than the economic safeguard protocol Labor originally intended.
“The last way to make our banks strong, the last way to protect depositors, is to hit banks with more taxes,” he said.
Treasurer Joe Hockey said the levy would not wash with taxpayers currently earning less from their investments.
“Now is exactly the wrong time to apply such a tax to bank accounts, when people are receiving lower returns than they might have expected in the past,” Hockey said.
Taxpayers Australia chief executive Moti Kshirsagar said the decision makes practical sense for everyday taxpayers.
“It’s good for everyone the government has seen reason. A bank deposit levy would have only discouraged taxpayers from saving. There are already too few vehicles for safe investment without a restrictive tax on earned money.”
It’s predicted the cut will result in a $1.5 billion hit to the budget.
Taxpayers Australia chief executive Moti Kshirsagar said the decision makes practical sense for everyday taxpayers.
“It’s good for everyone the government has seen reason. A bank deposit levy would have only discouraged taxpayers from saving. There are already too few vehicles for safe investment without a restrictive tax on earned money.”
It’s predicted the cut will result in a $1.5 billion hit to the budget.
Taxpayers Australia chief executive Moti Kshirsagar said the decision makes practical sense for everyday taxpayers.
“It’s good for everyone the government has seen reason. A bank deposit levy would have only discouraged taxpayers from saving. There are already too few vehicles for safe investment without a restrictive tax on earned money.”
It’s predicted the cut will result in a $1.5 billion hit to the budget.
# [Bank deposit levy], [big 4 banks], [Commonwealth], [investments], [Joe Hockey], [labor government], [Liberal], [Nab], [savings], [Tony Abbott]
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