Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax (FBT) year commencing on 1 April 1999?
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FOI status:may be releasedFOI number: I 1018404
- a fringe benefit provided by way of a loan;
- a car fringe benefit where an employer chooses to value the benefit using the operating cost method.
On 1 April 1999 an employer lends an employee $50,000 for five years at an interest rate of 5% per annum. Interest is charged and paid 6 monthly and no principal is repaid until the end of the loan. The actual interest payable by the employee for the current year is $2,500 (50,000 x 5%). In the current year the taxable value is $750.00 [ (50,000 x 6.50%) - $2,500 ].
Commissioner of Taxation
28 April 1999
No draft issued
BO FBT 155
car fringe benefits
FBT benchmark interest rate
fringe benefits tax
loan fringe benefits