fbt tagged posts

Family Tax Credit Raised and FBT Lowered

November 25, 2009 New Zealand Taxation

United Future AnnouncementChanges were announced on November 24th to both the New Zealand minimum family tax credit and fringe benefit tax (FBT) on low-interest employment related loans.

According to a statement by Peter Dunne, New Zealand Revenue Minister, low-income families who are eligible for minimum family tax credits, will see a small rise in their received amount on April 1st 2010. Explaining the change, Peter Dunne said “The minimum family tax credit provides a guaranteed minimum family income to families who are in work. It currently guarantees recipients a net income of $20,540 a year. This will rise to $20,800 from 1 April 2010”. The tax credit aims at making sure that eligible families are at a net gain from entering the workforce...

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Fringe Benefit Tax Rate Lowered

June 23, 2009 New Zealand Taxation  No comments

The rate at which fringe benefit tax is calculated on low-interest employment related loans has been lowered.

The rate used to determine the Fringe Benefit Tax (FBT) on low-cost employment related loans will drop from its current rate of 8.05% to 6.41%. The change was announced and set by Order in Council on the 22nd of July, and will come into effect on the 1st of July. The change was announced by Revenue Minister Peter Dunne.

The fall of 164 basis points in this rate is attributed to the change in variable first mortgage housing interest rates surveys, since the last rate change, in January.

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