Tax discount of 50% for interest income

On 25 November 2011, the government announced it would defer the start date of the savings discount measure to 2013-14 income year.

From 1 July 2013, individuals will be entitled to a tax discount of 50% on up to $500 of interest income they receive.

From 1 July 2014, individuals will be entitled to a tax discount of 50% on up to $1,000 of interest income received each year.

The discount will apply to interest received from deposits held with any bank, building society or credit union, as well as interest earned on bonds, debentures and annuity products.

Media release

Media release No.110 Improving incentives for savings was released by the Assistant Treasurer Minister for Financial Services and Superannuation on 12 July 2011.

More information Fact sheet Improving incentives for saving on the website A tax plan for our future Budget measures 2010-11 Part 1 Revenue Measures - Stronger, fairer, simpler tax reform - 50% discount for interest income Policy decisions taken since the 2010 Pre-election Economic and Fiscal Outlook (PEFO) Policy decisions taken since the 2011-12 Budget.