A promise to give some tax relief to taxpayers who invested in interest bearing accounts rather than shares was announced last year.

However, that encouragement has now been deferred for a further year and the income amount significantly diminished.

Under the new announcement, the commencement of the 50% tax discount for interest will be deferred by another twelve months and the cap on eligible interest income will be reduced to $500 in 2013 and $1,000 in 2014.

In other words, the promised encouragement to save is of little interest or benefit to anybody and is not likely to change any savings habits.