FBT rate for low-interest loans to rise

The interest rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise to 8.52 per cent from 1 January 2005.

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 interest rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 8.02 per cent to 8.52 per cent from 1 January 2005.

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

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