As of 1 July 2001, Australia's Financial Institutions Duty (FID) was abolished.
FID is a tax on deposits and its abolition was part of the Federal Government's tax system reforms. ANZ systems and processes were modified for this change, and have ceased to charge FID on all deposits that were made to accounts after 1 July 2001.
FID may still appear on customer statements after 1 July 2001, but this will relate to deposits made on or before 30 June 2001.
Customer accounts held in Queensland will not be affected, as FID is not levied in this State.
If a customer has an account with cheque access, Debits Tax (also known as Bank Accounts Debits Tax or BAD) will continue to apply to debits made to those accounts, in all States other than NSW. Debits Tax was abolished in New South Wales as of 1 January 2002, with remaining States and Territories expected to abolish no later than 1 July 2005. For further information on BAD Abolition, please contact your State Treasury Office.
For further information about FID changes, please contact your branch or relationship manager, or call ANZ on 13 13 14.
Frequently asked questions
|How will FID abolition affect customers?|
From 1 July 2001, customers will stop paying FID on deposits made on or after that date. FID will only be levied on deposits made on or before 30 June 2001.
Customers will receive notification of the final FID charge made to their account in account statements distributed after 30 June 2001. The timing of this notification will depend on customers statement cycles it could be monthly, quarterly or six-monthly.
|Does this mean there won't be any taxes on customer bank accounts?|
No. If a customer has an account with cheque access, Debits Tax (BAD) will continue to apply to debits made to those accounts, in all states other than NSW. New South Wales Debit Tax (BAD) was abolished as of 1 January 2002, with remaining states and territories expected to abolish no later than 1 July 2005. For further information on BAD Abolition, please contact the relevant State Treasury Office.
|What has ANZ done to prepare for this change?|
ANZ systems and processes were modified for this change, and ceased to charge FID on all deposits that were made to accounts after 1 July 2001. FID may, in some cases continue to be recovered after this date, on deposits made to accounts on or before 30 June 2001.
|How has ANZ notified customers of this change?|
From 31 May 2001, customers will be made aware of FID abolition through a number of communication channels including:
Debit taxes are charged on debits to bank accounts. The types of debit taxes and how they apply are different in each state and territory. A key step in the Government's tax system reforms is the abolition of these taxes.
In January 2002, New South Wales was the first state to abolish Debits Tax (charged on debits to accounts with cheque facilities).
|Tax||Charged on:||Applicable to these states:|
(also known as 'Bank Accounts Debits Tax' or 'BAD Tax')
|All debits to accounts with cheque facilities||Queensland, Victoria, Western Australia, Northern Territory, South Australia, ACT|
|Debits Duty||All debits||Tasmania|
|Electronic Transactions Duty||All electronic debits||Northern Territory|
|Credit Card Duty||All debits to credit card accounts||Tasmania|
On 1 July ANZ ceased charging the above taxes and duties on debits made from all applicable accounts. Debit taxes or duties may, in some cases, continue to be recovered for debit entries due on or before 30 June 2005.
Please note that Credit Business Duty continues to apply to accounts domiciled in Queensland. This tax, however, is scheduled to be abolished from 1 January 2006.
ANZ recommends that customers seek independent financial and legal advice regarding taxation issues.
For further information about the changes to debits taxes, please contact your branch or relationship manager, or call ANZ on 13 13 14.
GST related pricing changes
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.