FBT Benchmark Interest Rate

The benchmark interest rate from 1 April 2024 for the year ended 31 March 2025 is 8.77%.

The benchmark interest rate for the year ended 31 March 2024 is 7.77%. Rates for earlier years are set out below.

The benchmark or deemed interest rate is used to calculate the taxable value of a loan fringe benefit, or a car fringe benefit using the operating cost method.

FBT Year Ending	Benchmark Interest Rate	Reference
31 March 2025	8.77% perannum	*
31 March 2024	7.77% per annum	*
31 March 2023	4.52% per annum	*
31 March 2022	4.52% per annum	*
31 March 2021	4.80% per annum	*
31 March 2020	5.37% per annum	TD 2019/6
31 March 2019	5.20% per annum	TD 2018/2
31 March 2018	5.25% per annum	TD 2017/3
31 March 2017	5.65% per annum	TD 2016/5
31 March 2016	5.65% per annum	TD 2015/8
31 March 2015	5.95% per annum	TD 2014/5
31 March 2014	6.45% per annum	TD 2013/8
31 March 2013	7.40% per annum	TD 2012/7
31 March 2012	7.80% per annum	TD 2011/6
31 March 2011	6.65% per annum	TD 2010/6

historical interest rates 1987 to 2010 below

Taxable value of a loan fringe benefit

The taxable value of a loan fringe benefit is the difference between the interest calculated on a daily balance at the benchmark rate, and the actual interest accrued. No GST enters the calculations.

Example Calculation (drawn from Tax Determination TD 2019/6)

Taxable value of a loan fringe benefit

– On 1 April 2019 an employer lends an employee $50,000 for five years at an interest rate of 5% per annum.

– Interest is charged and paid six-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 5.37% benchmark rate, is $2,685.

– The taxable value is $185 ($2,685 – $2,500).

Car fringe benefit operating cost method

The benchmark interest rate is required when the operating cost method of calculating a car fringe benefit is selected, and when the vehicle is not held by the employer under a lease.

When the vehicle is owned outright or held under a hire purchase agreement, the determination of operating costs for car fringe benefit purposes requires the inclusion of deemed interest at the benchmark rate.

The deemed interest is calculated by multiplying the depreciated value of the car by the statutory interest rate.

Benchmark Interest Rate Annual Determinations

* The annual determinations procedure previously followed by the Tax Office has been replaced by website updates. The benchmark interest is determined from the standard variable rate for owner occupier housing loans of the major banks published by the Reserve Bank of Australia in the period immediately before the FBT year.

These benchmark interest rates are for FBT purposes. The benchmark interest rates for Division 7A purposes are here.

Historical benchmark interest rates 1987 to 2010

Fringe benefits tax was introduced with effect from 1 April 1986.

FBT Year Ending	Benchmark Interest Rate	Reference
31 March 2010	5.85% per annum	TD 2009/10
31 March 2009	9.00% per annum	TD 2008/7
31 March 2008	8.05% per annum	TD 2007/10
31 March 2007	7.30% per annum	TD 2006/24
31 March 2006	7.05% per annum	TD 2005/8
31 March 2005	7.05% per annum	TD 2004/12
31 March 2004	6.55% per annum	TD 2003/8
31 March 2003	6.05% per annum	TD 2002/13
31 March 2002	7.55% per annum	TD 2001/4
31 March 2001	7.30% per annum	TD 2000/19
31 March 2000	6.50% per annum	TD 1999/2
31 March 1999	6.70% per annum	TD 98/6
31 March 1998	7.55% per annum	TD 97/8
31 March 1997	10.50% per annum	TD 96/17
31 March 1996	10.50% per annum	TD 95/20
31 March 1995	8.75% per annum	TD 94/29
31 March 1994	7.25% per annum	TD 93/66
31 March 1993	9.25% per annum
31 March 1992	13.50% per annum
31 March 1991	14.90% per annum
31 March 1990	14.25% per annum
31 March 1989	12.75% per annum
31 March 1988	14.75% per annum
31 March 1987	14.75% per annum

This page was last modified 2024-03-29