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The Federal Government is planning to remove the IWT on Commonwealth Government Securities.
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The proposal is aimed at bringing Australia's tax treatment of Commonwealth Government Securities in line with other countries, including the United States and the United Kingdom.
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The removal of the IWT would assist in improving the neutrality of the tax system and the efficiency of the financial markets.
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In addition, it is aimed at improving the attractiveness of Commonwealth Government Securities in the global financial markets.
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According to the Federal Treasurer, it is expected that the forgone tax revenue will be offset by savings in interest paid on the securities.
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The necessary legislation will be introduced by the government during the spring sittings of parliament. The exemption from IWT will apply to interest paid after the day the bill is passed.
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For more information on the removal of the IWT on Commonwealth Government Securities, click here, or visit the Treasurer's website at www.treasurer.gov.au
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