FBT rate for low-interest loans falls
The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans will fall from 8.05% to 6.41% from 1 July, Revenue Minister Peter Dunne announced today.
The rate is reviewed regularly to align it with the results of the Reserve Bank's survey of variable first mortgage housing rates. The new lowered rate reflects recent survey figures, based on a 164 basis points fall in variable first mortgage housing interest rates since the rate was last adjusted in January this year.
The new rate was set by Order in Council today.
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