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Interest Withholding Tax – Extension of Eligibility for Exemption to State Government Bonds

Date:

Friday, 8 August 2008

Content ID:

1406

Abstract:

On 20 May 2008 the Government announced its intention, as part of a broader suite of initiatives aimed at strengthening Australia’s financial markets, to extend eligibility for exemption from interest withholding tax (IWT) to state government bonds (see Treasurer's Press Release No. 58).

These amendments will make bonds (but not other debentures or debt interests) issued in Australia by State or Territory central borrowing authority eligible for exemption from IWT providing they meet the requirements of section 128F (of the Income Tax Assessment Act 1936), such as the public offer test.  The measure will apply to interest paid on or after the date of Royal Assent.

Comment on the draft legislation to give effect to this measure is being sought.  The measure is currently scheduled to be introduced, with a view to passage, in the Spring 2008 Parliamentary sittings.

It would be appreciated if comments and submissions could be provided by 5pm, Monday 18 August, 2008 (or sooner where possible) to assist in settling the legislative features of this measure. 

Comments and submissions can be provided to eli.hefter@treasury.gov.au or

Eli Hefter
International Tax and Treaties Division
Treasury
Langton Crescent
Parkes ACT 2601

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Tax Laws Amendment (2008 Measures No. 5) Bill 2008 - Draft  27.89kb

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