New legislation - 2009: Orders in Council (2009)
Drop in FBT rate for low-interest loans
The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans has dropped to 8.05%, down from the 10.90% rate which has applied since 1 October 2008.
The rate will apply retrospectively from 1 January 2009. This is because when this 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 2 February 2009.
Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2009 (SR 2009/8)
Other pages in: Orders in Council (2009)
- Student loan scheme threshold repayment for the 2010 - 11 tax year
- Minimum family tax credit income amount increased
- FBT rate for low-interest loans lowered
- Forests (Payment of Money) Order 2009
- Use-of-money interest methodology and rate changes
- Student loan scheme - volunteer exemption
- Student loan scheme - interest rate for 2009-10
Date published: 11 May 2009
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