With the Federal Government's New Tax System now in operation, ANZ is committed to providing customers with comprehensive information on how the GST affects banking charges.
Under the GST legislation, many banking products and services are classified as input taxed. This means that banks cannot claim back from the ATO GST incurred on goods purchased to deliver these products and services, resulting in increased operating costs.
ANZ absorbs a portion of this additional cost but a small number of rate and fee changes have been necessary. These price changes have been discussed with the Australian Competition and Consumer Commission (ACCC) and are consistent with their GST Guidelines.
Under the Federal Government's New Tax System, banking customers have benefited considerably from the removal of Financial Institution Duty (FID) on 1 July 2001 and will further benefit from the planned abolition or phasing out of Debits Tax (BAD), as from 1 July 2005.