On 28 March 2012, the ATO issued Taxation Determination TD 2012/7 entitled "Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2012?"
It was not previously released in draft form.
The benchmark interest rate for the FBT year commencing on 1 April 2012 is 7.40% per annum. This rate replaces the rate of 7.80% that has applied for the previous FBT year commencing on 1 April 2011.
The rate of 7.40% is used to calculate the taxable value of:
- a fringe benefit provided by way of a loan; and
- a car fringe benefit where an employer chooses to value the benefit using the operating cost method.