Financial Institutions Duty
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Financial Institutions Duty (FID) was a duty levied by 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 duty was a percentage of the amount deposited, but with a maximum tax per deposit on ordinary accounts,
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 a factor days/365, so for example only 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).
[edit] Legislation
- Stamp Duties Act 1920 (New South Wales)
- Financial Institutions Duty Act 1982 (Victoria)
- Financial Institutions Duty Act 1983 (Western Australia), with effect 1 January 1984.
- Financial Institutions Duty Act 1983 (South Australia)
- Financial Institutions Duty Act 1986 (Tasmania)
- Financial Institutions Duty Act 1989 (Northern Territory) [1].
- Financial Institutions Duty Determination 1992 (Australian Capital Territory)
[edit] References
- Bank Account Transaction Taxes: 'FID' and 'BAD' , David Kehl, Parliament of Australia Parliamentary Library Research Note 7 2001-02
- Press release on FID abolition, by the Australian Bankers' Association
