Draft legislation on State Bonds withholding tax exemption

The Treasury released for comment draft legislation which will exempt interest paid under bonds issued in Australia by State or Territory central borrowing authorities from interest withholding tax, providing that the bond satisfies the public offer test in Sec. 128F of the Income Tax Assessment Act 1936. (At present, interest on bonds issued by State or Territory central borrowing authorities is specifically excluded from the public offer exemption.) The exemption was first announced on…