Announcements
PUBLISHED 31 May 2011

FBT rate for low-interest loans down

The prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans has been set at 5.90%, from 1 April 2011. For more information see the media statement.


Hon Peter Dunne
Minister of Revenue

Media statement

Dunne: FBT rate for low-interest loans falls

The prescribed rate of interest used to calculate fringe benefit tax on low-interest, employment-related loans is 5.90%, down from the previous rate of 6.24% which applied from the quarter beginning 1 October 2010, Revenue Minister Peter Dunne announced today.

The new rate applies for the quarter beginning 1 April 2011.

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 rate was set by Order in Council yesterday.

Ends

Mark Stewart | Press Secretary | Office of Hon Peter Dunne
Cell +64 21 243 6985