FBT Benchmark Interest Rate

The benchmark interest rate for the year ended 31 March 2022 is 4.52%.

The benchmark interest rate for the year ended 31 March 2021 is 4.80%.

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 EndingBenchmark Interest RateReference
31 March 20224.52% per annum*
31 March 20214.80% per annum*
31 March 20205.37% per annumTD 2019/6
31 March 20195.20% per annumTD 2018/2
31 March 20185.25% per annumTD 2017/3
31 March 20175.65% per annumTD 2016/5
31 March 20165.65% per annumTD 2015/8
31 March 20155.95% per annumTD 2014/5
31 March 20146.45% per annumTD 2013/8
31 March 20137.40% per annumTD 2012/7
31 March 20127.80% per annumTD 2011/6
31 March 20116.65% per annumTD 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* The annual determinations procedure previously followed by the Tax Office has been replaced by website updates.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 EndingBenchmark Interest RateReference
31 March 20105.85% per annumTD 2009/10
31 March 20099.00% per annumTD 2008/7
31 March 20088.05% per annumTD 2007/10
31 March 20077.30% per annumTD 2006/24
31 March 20067.05% per annumTD 2005/8
31 March 20057.05% per annumTD 2004/12
31 March 20046.55% per annumTD 2003/8
31 March 20036.05% per annumTD 2002/13
31 March 20027.55% per annumTD 2001/4
31 March 20017.30% per annumTD 2000/19
31 March 20006.50% per annumTD 1999/2
31 March 19996.70% per annumTD 98/6
31 March 19987.55% per annumTD 97/8
31 March 199710.50% per annumTD 96/17
31 March 199610.50% per annumTD 95/20
31 March 19958.75% per annumTD 94/29
31 March 19947.25% per annumTD 93/66
31 March 19939.25% per annum 
31 March 199213.50% per annum 
31 March 199114.90% per annum 
31 March 199014.25% per annum 
31 March 198912.75% per annum 
31 March 198814.75% per annum 
31 March 198714.75% per annum 

This page was last modified 2021-05-27