Interest

Gareth maintains several bank accounts. He has provided you with the following information in relation to interest earned during the 2015/16 income year:

Suncorp Bank savings account (net interest)$219(TFN withholding tax of $211 deducted by bank - refer to note (a)Macquarie Bank term deposit (gross interest) - refer to note (b)$1,110

Notes:

(a) Gareth opened his Suncorp Bank savings account on 15th July 2015 as they offered a higher interest rate than his previous bank. When opening the bank account, Gareth was in a hurry and inadvertently forgot to provide the bank with his tax file number. Accordingly, for the 2015/16 income year Suncorp bank has deducted 49% (or $211) TFN withholding tax in respect of the interest earned. The net amount of $219 was credited to his account.

(b) On 28th July 2015, Gareth deposited $30,000 in a six month term deposit with Macquarie Bank paying 4% p.a. interest. Rather than receiving the interest on the maturity of the term deposit on 28th January 2016, Gareth elected to rollover the interest of $600 together with the principal of $30,000 for a further six months to mature on 28th July 2016. Gareth estimates that approximately $510 in interest would be accruing on this new term deposit from 28th January 2015 to 30th June 2016.