- Bank Account Debits Tax
Bank Account Debits Tax (BADT or BAD) was an Australian tax levied on customer withdrawals from bank accounts with a cheque facility (both withdrawals made by cheque or by another means, such as EFTPOS).
The tax was introduced by the Commonwealth in 1982. The power to levy the tax was transferred to the states in 1990, except for Norfolk Island which did not charge it. The tax was abolished by the states on dates between 1 July 2002 and 1 July 2005 as part of the package of reforms for the introduction of the Goods and Services Tax. The Financial Institutions Duty was also abolished as part of this package.
The tax was based on the amount withdrawn, and varied by state. The final rates were per the following table.
Tas ACT, NT, NSW, Qld,
less than $1 nil nil $1 to less than $100 $0.15 $0.15 $100 to less than $500 $0.35 $0.70 $500 to less than $5,000 $0.75 $1.50 $5,000 to less than $10,000 $1.50 $3.00 $10,000 or more $2.00 $4.00
The tax was levied according to the state where the bank account was domiciled, not where the account holder lived. A total of about $1 billion per year was being collected near the end of its full operation in 2001 (according to the Australian Bankers' Association).
Since the tax applied only to cheque accounts, bank customers could choose not to have a cheque facility to avoid the tax, or could keep a separate cheque account used only when needing to write a cheque.
On 11 May 2005, National Australia Bank announced it had incorrectly collected Bank Account Debits Tax totalling approximately $10 million from 140,000 bank accounts. The bank's announcement included plans to reimburse customers for the $10 million incorrectly collected and a further $4 million in interest owed. However, since the issue may have dated back to the 31 December 1982 introduction of the tax, there were insufficient records to identify all affected customers.
- Debits Tax Act 1982 (Commonwealth)
- Debits Tax Administration Act 1982 (Commonwealth)
- Debits Tax Act 1990 (New South Wales)
- Debits Tax Act 1990 (Queensland)
- Debits Tax Act 1990 (South Australia)
- Debits Tax Act 1990 (Tasmania)
- Debits Tax Act 1990 (Victoria)
- Debits Tax Act 1990 (Western Australia)
- Debits Tax Act 1997 (Australian Capital Terrority)
- Debits Tax Act 1990 (Northern Terrority)
- Bank Account Transaction Taxes: 'FID' and 'BAD' , David Kehl, Parliament of Australia Parliamentary Library Research Note 7 2001-02
- Press release on FID abolition, by the Australian Bankers' Association
- Bank account overcharging announcement, National Australia Bank media release and ASX announcement
Wikimedia Foundation. 2010.
Look at other dictionaries:
Debits Tax — is a type of tax imposed on debit transactions. It was in force in Australia from 1982 to 1 July 2005, and was introduced to Sri Lanka on 1 June 2002. Currently, all bank accounts in Sri Lanka are charged 0.1% tax on any debit withdrawal above… … Wikipedia
Debits and credits — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
Bank — For other uses, see Bank (disambiguation). Banker and Bankers redirect here. For other uses, see Banker (disambiguation). Banking … Wikipedia
account — a record of a business transaction. When you buy something on credit, the company you are dealing with sets up an account . This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you … Financial and business terms
bank — bank1 /bangk/, n. 1. a long pile or heap; mass: a bank of earth; a bank of clouds. 2. a slope or acclivity. 3. Physical Geog. the slope immediately bordering a stream course along which the water normally runs. 4. a broad elevation of the sea… … Universalium
Deposit account — Deposits redirects here. For other uses, see Deposit (disambiguation). Banking A series on … Wikipedia
Medici bank — Infobox Defunct Company company name = Medici bank company fate = Shut down by authorities successor = foundation = c. 1397 defunct = 1494 location = Various; home branch in Florence, Italy industry = Banking key people = Giovanni di Bicci,… … Wikipedia
Medici Bank — For the private bank in Austria that failed due to its investment in Bernard Madoff s Ponzi scheme, see Bank Medici. Medici Bank Industry Banking Key people Giovanni di Bicci, Cosimo de Medici, Piero di Cosimo, Lorenzo de Medici, Francesco… … Wikipedia
Health savings account — A Health Savings Account (HSA) is a tax advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal… … Wikipedia
BAD — may refer to:* Big Audio Dynamite British rock band founded by Mick Jones, formerly of punk pioneers The Clash. * Broken as designed A computer slang term originating at IBM, saying of a program that it is bogus because of bad design and… … Wikipedia