Lower FBT rate on interest on loans
The rate of interest used to calculate fringe benefit tax for low-interest, employment-related loans has decreased from 8.5% to 7.95%, in line with market rates. The new rate applies from the quarter beginning 1 April 2001.
The rate is reviewed regularly to ensure it is in line with the Reserve Bank survey of first mortgage housing rates. It last changed with effect from the quarter beginning 1 January 2001.
The rate was changed by means of an Order in Council signed on 21 May 2001, Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2001.