• 8.4 Statutory interest rate

    The statutory interest rate is set by reference to the standard variable rate for owner-occupied housing loans of the major banks that the Reserve Bank of Australia published most recently before the beginning of the FBT year. This statutory rate is the basis for calculating fringe benefit values for all types of loans you provide, whether interest-free or at low interest. The statutory interest rate may differ for housing loans made to employees before 3 April 1986, or for loans bearing a fixed interest rate taken out before 1 July 1986.

    The statutory interest rate for the following year is announced in a taxation determination, usually published in April. The statutory interest rate for the year commencing 1 April 2010 is 6.65%.

    Following is a list of statutory interest rates:

    Period during which loan was made

    Date on which period commenced

    Date on which period ended

    Interest rate
    (% per annum)

    1 January 1946

    1 August 1952

    3.875

    2 August 1952

    31 March 1956

    4.5

    1 April 1956

    28 February 1961

    5.0

    1 March 1961

    10 April 1963

    5.25

    11 April 1963

    31 March 1965

    4.75

    1 April 1965

    31 July 1968

    5.0

    1 August 1968

    31 March 1970

    5.5

    1 April 1970

    30 September 1973

    6.25

    1 October 1973

    13 September 1974

    7.25

    14 September 1974

    28 February 1978

    9.25

    1 March 1978

    31 March 1980

    8.75

    1 April 1980

    31 July 1980

    9.25

    1 August 1980

    31 December 1980

    9.75

    1 January 1981

    31 August 1981

    10.75

    1 September 1981

    31 March 1982

    11.75

    1 April 1982

    31 January 1983

    12.75

    1 February 1983

    30 September 1983

    12.50

    1 October 1983

    30 November 1983

    12.00

    1 December 1983

    15 April 1985

    11.50

    16 April 1985

    14 July 1985

    12.00

    15 July 1985

    30 September 1985

    12.50

    1 October 1985

    6 April 1986

    13.50

    7 April 1986

    30 June 1986

    14.75

    Period during which loan was made

    Date on which period commenced

    Interest rate
    (% per annum)

    1 April 1986

    14.75

    1 April 1987

    14.75

    1 April 1988

    12.75

    1 April 1989

    14.25

    1 April 1990

    14.90

    1 April 1991

    13.50

    1 April 1992

    9.25

    1 April 1993

    7.25

    1 April 1994

    8.75

    1 April 1995

    10.50

    1 April 1996

    10.50

    1 April 1997

    7.55

    1 April 1998

    6.70

    1 April 1999

    6.50

    1 April 2000

    7.30

    1 April 2001

    7.55

    1 April 2002

    6.05

    1 April 2003

    6.55

    1 April 2004

    7.05

    1 April 2005

    7.05

    1 April 2006

    7.30

    1 April 2007

    8.05

    1 April 2008

    9.00

    1 April 2009

    5.85

    1 April 2010

    6.65

    1 April 2011

    7.80

    1 April 2012

    7.40

      Last modified: 03 Jul 2012QC 17821