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Australia Sets 2014 Benchmark Interest Rate for Private Company Loans — Orbitax Tax News & Alerts

Australia has set the benchmark interest rate at 5.95%, which is used for determining required repayments of private company loans to shareholders. The rate applies for the income year beginning 1 July 2014. If repayments do not meet or exceed the determined repayment amount, the difference between the required payment and the actual payment made is treated as a dividend.

This benchmark interest rate is relevant to private company loans made or deemed to have been made after 3 December 1997 and before 1 July 2014; and to trustee loans made after 11 December 2002 and before 1 July 2014.