Good news about tax!

Just as librarians have weathered the impact of the GST, at last comes some new good news from the new tax system. From 1 July 2001, financial institutions duty (FID) and stamp duty on quotable marketable securities (SDQMS) are abolished. This may affect your library's and your personal financial affairs.

FID is a state and territory government tax on deposits made into cheque accounts, term deposits, credit card and other loan accounts. It is a flat percentage, generally .06%, of the deposit, up to a specified maximum. On some short-term deposits, it may apply daily. All states and territories except Queensland have collected FID.

Leases, rentals and hire purchase have attracted FID, so payments or fees relating to these arrangements may need to be adjusted. If you have any queries about your accounts, you should contact your financial institution, real estate agent or leasing firm.

Another state government impost - stamp duty - will not, from 1 July, be charged for transfers of quoted marketable securities. These securities include public company shares which pay dividends, and public unit trust and superannuation schemes. Again, for specific analysis, contact your financial adviser or fund manager.

This information is drawn from the Australian Competition and Consumer Commission's 'GST news for business 18', which was once available on their website, at http://gst.accc.gov.au. A print copy may be obtained from the ACCC.

ACCC
PO Box 1199
Dickson ACT 2602

ph 02 6243 1111
fx 02 6243 1199

A a