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On 20 May 2008 the Government announced its intention, as part of a broader suite of initiatives aimed at strengthening Australia’s financial markets, to extend eligibility for exemption from interest withholding tax (IWT) to state government bonds: go here

Treasury has released draft legislation on the change and is seeking comments by 5pm, Monday 18 August, 2008.

For more information and a link to the draft legislation, go here

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