Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2015
2015 Order in Council sets the prescribed interest rate used to calculate FBT on low-interest loans provided by employers to employees at 5.99% from 1 Oct 2015.
The prescribed interest rate used to calculate fringe benefit tax on low-interest loans provided by employers to their employees has been changed to 5.99%. The new rate applies for the quarter beginning on 1 October 2015 and for subsequent quarters. The previous rate was 6.22%.
The FBT rate on employer-provided low-interest loans is reviewed regularly to align it with the results of the Reserve Bank’s survey of variable first mortgage housing rates. This ensures the prescribed rate is in line with market interest rates.
The new rate was set by Order in Council on 23 November 2015.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2015 (No 2) 2015 (LI 2015/293)