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Inland Revenue

Tax Policy

Announcements
PUBLISHED 28 May 2007

FBT on low-interest loans rises

The rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 9.55% to 9.79% from 1 July 2007. For more information see the government's media statement.


Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

FBT rate on low-interest loans to rise

The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 9.55% to 9.79% from 1 July 2007, 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 interest rates. It was last adjusted with effect from 1 April 2006.

The new rate was set by Order in Council today.