New legislation - 2011: Orders in Council (2011)
FBT rate for low-interest loans falls
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)
Date published: 08 Jul 2011
Back to top