Statutory/Deemed Interest Rate

Discussion in 'Accounting & Tax' started by Pumpkin, 11th Jun, 2020.

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  1. Pumpkin

    Pumpkin Well-Known Member

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    I havent had to do any Centrelink or Family Tax Benefit or any of that sort, but just starting to look at our FBT and realise the rate for FBT Year 2020 is 5.37%, whilst the year before was 5.20%.
    How is this possible?
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Laws passed by Parliament and ATO determinations that are based on market rates determined annually under those law (TD 2019/16). For the 2021 FBT year the rate has fallen to 4.80%
    https://www.ato.gov.au/law/view/document?DocID=TXD/TD20196/NAT/ATO/00001&PiT=99991231235958 explains all the legal requirements of why this is the case.

    This is a FBT rate that applies to benchmark interest rates eg interest free loans and anciliiary to this a Div 7A loan requirement for a complying loan. Not sure how it may apply to CCB, FTB etc which may then be a reportable fringe benefit subject to reduction anyway
     
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  3. Pumpkin

    Pumpkin Well-Known Member

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    Thanks but something weird happened.... When I first opened it, I could see the 4.8% in your link.
    But when I came back and re-opened, the 4.8% wording is gone. Have I gone mad?

    Anyhow, I do see that from their usual website: FBT

    Just wonder how many people really get 5.37% return on average?
     
    Last edited: 11th Jun, 2020