Announcements
PUBLISHED 24 May 2004

FBT rate for low-interest loans rises

The interest rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise to 7.50% from 1 July 2004. The change was approved by Order in Council today. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

FBT rate for low interest loans rises

The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 7.30 per cent to 7.50 per cent from 1 July, Revenue Minister Michael Cullen announced today.

The rate is reviewed regularly in line with the results of the Reserve Bank's survey of first mortgage interest rates. It was last changed with effect from 1 April 2004.

The change was approved by Order in Council today.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail: [email protected]