Financial institutions duty (FID) was a duty levied by all Australian states and territories except Queensland on deposits to bank accounts, term deposits, and similar.
The tax was introduced in the different states on dates between 1982 and 1992. It was abolished in all states from 1 July 2001 as part of the package of reforms for the goods and services tax. The bank account debits tax was also abolished as part of this package.
The duty was a percentage of the amount deposited, but with a maximum tax per deposit on ordinary accounts,
-
ACT, NSW, Tas,
Vic, WANT SA Rate 0.06% 0.06% 0.065% Max per deposit $1,200 $1,500 $1,200
For term deposit or short-term money market investments there was no limit on the duty per deposit. But for amounts of $50,000 or more and up to 185 days the duty was reduced by the number of days divided by 365; so, for example, was 0.0012% on a 73-day investment (1/5 of the year).
The duty was levied according to the state where the bank account was domiciled, not where the account holder lived. About $1 billion per year was being collected just before its abolition (calculated by the Australian Bankers' Association).
Read more about Financial Institutions Duty: Legislation
Famous quotes containing the words financial, institutions and/or duty:
“... aside from the financial aspect, [there] is more: the life of my work. I feel that is all I came into the world for, and have failed dismally if it is not a success.”
—Mary E. Wilkins Freeman (1852–1930)
“With the breakdown of the traditional institutions which convey values, more of the burdens and responsibility for transmitting values fall upon parental shoulders, and it is getting harder all the time both to embody the virtues we hope to teach our children and to find for ourselves the ideals and values that will give our own lives purpose and direction.”
—Neil Kurshan (20th century)
“The duty of the State toward the citizen is the duty of the servant to its master.... One of the duties of the State is that of caring for those of its citizens who find themselves the victims of such adverse circumstances as makes them unable to obtain even the necessities for mere existence without the aid of others.... To these unfortunate citizens aid must be extended by government—not as a matter of charity but as a matter of social duty.”
—Franklin D. Roosevelt (1882–1945)