Australian government has published a discussion paper on the proposal to reduce the taxation on the interest income on savings by 50%, as proposed in the 2010-11 Budget. It is expressed that the introduction of the discount will benefit more than five million taxpayers. The low- and middle-income savers, who are more likely to put their savings into banks, credit unions or building societies, rather than investments will largely be benefited by this discount. According to the proposal, individuals will be entitled to a tax discount equal to 50% on up to AUD500 (USD529) of interest income received in 2012-13, and this will rise up to AUD1,000 of interest income received each year from July 1, 2013. The discount will apply to interest received from deposits held with any bank, building society or credit union, as well as interest on bonds, debentures and annuity products.