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Commonwealth Bank welcomes today’s announcement by NSW Government of early abolition of debits tax

29 May 2001

The Commonwealth Bank Group today welcomed the announcement by the NSW Government that Debits Tax would be abolished in NSW from 1 January 2002.

This announcement follows the upcoming removal of Financial Institutions Duty (FID), which is to take place from 1 July 2001, a move which will benefit the majority of the Group’s 10 million customers.

FID and Debits Tax are government taxes imposed on bank accounts in all Australian States (except Queensland which does not apply FID). The Federal Government worked with the banking industry and the State Governments to have these taxes removed as part of the overall tax reform package. While FID is to be abolished shortly, Debits Tax is not scheduled to be abolished until 2005.

The Managing Director of the Commonwealth Bank, Mr David Murray said he fully supported the announcement by the NSW Government to bring forward, by over 3 years, the abolition of Debits Tax in NSW to 1 January 2002.

Mr Murray added, "The abolition of FID will benefit all Commonwealth Bank account holders throughout Australia. Today’s announcement by the NSW Government is further good news for the Group’s NSW customers and will result in a saving for them of around $60 million per year".