|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Business & Investment Entities
ATO Resources |
TD 2009/10:
Fringe benefits tax: what is the benchmark interest rate to be used for
the fringe benefits tax year commencing on 1 April 2009?
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Please note that the PDF version is the authorised version of this ruling. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FOI status: may be released
Preamble
|
This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. |
Ruling
1. The benchmark interest rate for the fringe benefits tax (FBT) year commencing on 1 April 2009 is 5.85 per cent per annum. This rate replaces the rate of 9.00 per cent that has applied for the previous FBT year commencing on 1 April 2008.
2. The rate of 5.85 per cent 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.
Example
3. On 1 April 2009 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%). The notional interest, with a 5.85 per cent benchmark rate, is $2,925. The taxable value is $425 ($2,925 - $2,500).
Note: FBT does not apply to a loan in relation to a shareholder in a private company, or an associate of such a shareholder, that causes (or will cause), the private company to be taken under Division 7A of Part III of the Income Tax Assessment Act 1936 to pay the shareholder or associate a dividend.
Date of effect
4. This determination applies to the FBT year commencing on 1 April 2009.
Commissioner of Taxation
1 April 2009
Not previously issued as a draft
Previous Rulings/Determinations:
TD 94/29
TD 95/20
TD 96/17
TD 97/8
TD 98/6
TD 1999/2
TD 2000/19
TD 2001/4
TD 2002/13
TD 2003/8
TD 2004/12
TD 2005/8
TD 2006/24
TD 2007/10
TD 2008/7
References
ATO references:
NO 2009/2844
ISSN: 1038-8982
Subject References:
car fringe benefits
FBT benchmark interest rate
fringe benefits tax
loan fringe benefits
Legislative References:
ITAA 1936 Pt III Div 7A
TAA 1953
© Commonwealth of Australia
This work is copyright. You may download, display, print and reproduce this material in unaltered form only (retaining this notice) for your personal, non-commercial use or use within your organisation. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved.
Requests and inquiries concerning reproduction and rights should be addressed to Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
C & P Taxation Services
133 Alexander Street
CROWS NEST NSW
Phone (02) 9965 7261
The information contained in this website is intended only as a guide for small business, and should not be relied on to prepare tax returns in accordance with Australian taxation law. It is recommended that professional advice is sought by an accountant and registered tax agent regarding GST issues, capital gains tax and tax deductions. The publishers accept no responsibility for errors, omissions or any damages caused by the improper use of this guide.