Announcements
PUBLISHED 3 September 2007

FBT on low-interest loans up

The rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise from 9.79% to 10.37% from 1 October 2007. For more information see the media statement.


Hon Peter Dunne
MP for Ohariu Belmont
Minister of Revenue
Associate Minister of Health

MEDIA STATEMENT

Further rise in FBT rate for low-interest loans

The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise to 10.37%, up from the 9.79% rate announced for the previous quarter, Revenue Minister Peter Dunne announced today.

The revised rate will apply from 1 October 2007 and follows the latest Reserve Bank survey of first mortgage interest rates.
The rate is reviewed regularly to align it with the results of the Reserve Bank’s survey of first mortgage interest rates and was last adjusted with effect from 1 July 2007.

The new rate was set by Order in Council last week.

Contact: Ted Sheehan, Press secretary, Cell: 021 638 920