Why have I had withholding tax deducted?

Why have I had withholding tax deducted?

You do not have to disclose your TFN or ABN but if you or a joint owner of the account do not, we may deduct general withholding tax from interest paid on the account at the highest marginal tax rate (plus the Medicare levy).

The money withheld is paid to the Australian Taxation Office (ATO).