FBT rate for low-interest loans lowered
2009 legislation reduces the prescribed rate used to calculate fringe benefit tax on low-interest employment-related loans from 6.41% to 6%.
The prescribed rate used to calculate fringe benefit tax on low-interest employment-related loans has been reduced from 6.41% to 6%.
The rate applies retrospectively from 1 October 2009. This is because when the FBT rate is lowered, the new rate applies from the start of the current quarter.
The rate is reviewed regularly to align it with the results of the Reserve Bank’s survey of first home mortgage interest rates.
The new rate was set by Order in Council on 23 November 2009.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations (No 3) 2009