In a scary move, Australia will be the first nation in the world to introduce a compulsory tax on savings. That’s right – if you have money deposited in a bank account, you will have to pay the government.
The new compulsory tax on personal wealth is already provided for in the 2015 Australian budget. The measure is expected to serve as a global test balloon for Europe and North America, who will closely watch the outcome in Australia. If there is no massive resistance of Australian savers, the rest of the world should expect this outright confiscation very rapidly.
The tax itself is tightly shrouded in secrecy. Precise details are unknown at this time yet leaks have indicated it will target personal savings account and be applied to any holding in Australian banks.
Assistant Treasurer Josh Frydenberg has indicated an announcement on the new tax could be made before the budget. Mr Frydenberg is a member of the Government’s Expenditure Review Committee but has refused to provide any details.
“Any announcements or decisions around this proposed policy which we discussed at the last election will be made in the lead up or on budget night,” he said.
The Government is heading for a fight with the banking industry, which has warned it will have to pass the cost back onto customers. The net effect will be a fee for banks to hold your money versus the interest that should be paid to consumers.
The Federal Opposition has accused the Government of breaking an election promise by introducing the tax on deposits.
The drastic measure, which is in effect the government stealing from hardworking savers, whom have already paid tax on the money through income taxes, represents the latest step in the war on cash. Government around the world are dreaming up exotic ways to separate people from their money and ever more tightly control them through finance.
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