Deposit Interest and DIRT

[Staple]

On my notice of assessment for 2006, my deposit interest is included as part of my income (taxed interest) and the gross amount is taxed at 41%. Later, I get the DIRT element included as a credit.
To my understanding, I would appear to be paying a net 21% on this interest.
I thought that the DIRT deducted of 20% satisfied my tax liability on this interest.
Am I wrong ?

 

[Clarkey]

On my notice of assessment for 2006, my deposit interest is included as part of my income (taxed interest) and the gross amount is taxed at 41%. Later, I get the DIRT element included as a credit.
To my understanding, I would appear to be paying a net 21% on this interest.
I thought that the DIRT deducted of 20% satisfied my tax liability on this interest.
Am I wrong ?

If you have a look again you will see that your standard rate cut off point is raised by the amount of interest. This effectively taxes you at 20% instead of 42%. While you could be paying tax at 42% on some of your income it will not be the interest.

 

[Staple]

Thanks Clarkey, I will check this again.