Issued
2010

FBT rate for low-interest loans

2010 Order in Council raises the prescribed rate used to calculate FBT on low-interest employment-related loans to 6.24% from 1 October 2010.

The prescribed rate used to calculate fringe benefit tax on low-interest employment-related loans has been raised from 6% to 6.24%. The new rate applies from the quarter beginning 1 October 2010.

The rate is reviewed regularly to align it with the results of the Reserve Bank's survey of variable first mortgage housing rates.

The new rate was set by Order in Council on 30 August 2010.

Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2010 (SR 2010/300)