FBT interest rate for low-interest loans down

The rate of interest used to calculate fringe benefit tax for low-interest, job-related loans has decreased from 7.19% to 6.70%, with effect from the quarter beginning 1 January 2002. The new rate was approved by Order in Council yesterday. For more information see the Government's media statement.

Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

FBT for low interest loans drops

The prescribed rate of interest used to calculate fringe benefit tax for low interest, employment-related loans has dropped from 7.19 percent to 6.70 percent, Revenue Minister Michael Cullen announced today.

The new rate applies from the quarter beginning 1 January 2002.

The rate is reviewed regularly to ensure it is in line with the results of the Reserve Bank's regular survey of first mortgage interest rates. It last changed with effect from the quarter beginning 1 October 2001, when it reduced from 7.69 percent to 7.19 percent.

Contact: Patricia Herbert [senior press secretary] 471-9412, 021-270-9013, [email protected]