FBT rate for low-interest loans increases
2014 Order in Council sets the prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans at 6.70% from 1 Oct 2014.
The prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans is 6.70%, up from the previous rate of 6.13% which applied from the quarter beginning 1 July 2014.
The new rate applies for the quarter beginning 1 October 2014.
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 18 August 2014.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations (No 2) 2014 (LI 2014/284)