Tax time advice for term deposits

Tax time advice for term deposits

The amount of tax you will pay on the interest earned from a term deposit depends on your marginal tax rate.

The interest you earn is added to your total taxable income for the year, so it depends on what tax bracket you’re in.

Check if you have provided your tax number (TFN) to your bank. You don’t have to do this, but if you don’t, the bank may withhold tax on your interest payments at your highest marginal tax rate.

This could be much higher than the rate you normally pay.

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