Issued
2011

FBT rate for low-interest loans falls

2011 Order in Councils sets the prescribed rate of interest used to calculate FBT on low-interest, employment-related loans. Applies from 1 Apr 2011.

The prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans is 5.90%, down from the previous rate of 6.24% which applied from the quarter beginning 1 October 2010.

The new rate applies for the quarter beginning 1 April 2011.

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 May 2011.

Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2011 (SR 2011/192)