The federal government is considering a new savings scheme that will encourage more people to put money away for years into high interest rate bank accounts. The idea is believed to come from the Henry Tax Review, which is yet to be released by the government.
The new savings scheme could offer significant tax breaks for savers - similar to a superannuation’s tax break which gives super investors a low tax rate of just 15%. Some taxpayers now pay 50% tax on the interest earned on their savings.
