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Inland Revenue

Tax Policy

Announcements
PUBLISHED 20 February 2006

FBT on low-interest loans up

The rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 9.01% to 9.55% from 1 April 2006. For more information see the government's media statement.


Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

FBT rate on low-interest loans rises

The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 9.01% to 9.55% from 1 April 2006, Revenue Minister Peter Dunne announced today.

The rate is reviewed regularly to align it with the results of the Reserve Bank’s survey of first mortgage rates. It was last adjusted with effect from 1 July 2005.

The new rate was set by Order in Council today.

Contact: Ainslie Fenwick 04 471 9728