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Inland Revenue

Tax Policy

Announcements
PUBLISHED 24 August 2004

FBT rate for low-interest loans to rise

The interest rate used to calculate fringe benefit tax on low-interest, employment-related loans will rise to 8.02% from 1 October 2004. The change was approved by Order in Council today. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

FBT rate for low-interest loans up

The prescribed rate used to calculate fringe benefit tax on low interest, employment-related loans will rise from 7.50 percent to 8.02 percent from 1 October 2004, Revenue Minister Michael Cullen announced today.

The rate is reviewed regularly in line with the results of the Reserve Bank’s survey of first mortgage rates. It was last changed with effect from 1 July 2004.

The change was approved by Order in Council today.

Contact: Leigh Pearson [press secretary] 04-471-9412 or 021-270-9013.