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FBT interest rate for cheap loans drops

Monday, 27 August 2001, 5:06 pm
Press Release: New Zealand Government

27 August 2001 Media Statement

FBT interest rate for cheap, job-related loans drops

The prescribed rate of interest used to calculate fringe benefit tax for low-interest, employment-related loans has decreased from 7.95 percent to 7.69 percent, Revenue Minister Michael Cullen announced today.

The new rate was approved by Order in Council today and applies from the quarter beginning 1 July 2001.

The rate is reviewed regularly to ensure it is in line with the Reserve Bank's survey of first mortgage interest rates. It last changed with effect from the quarter beginning 1 April 2001.

ENDS

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