As a result of the release of Reserve Bank data, the benchmark interest rate for the 2013-14 income year, for the purposes of the deemed dividend provisions of Div 7A of the ITAA 1936, can now be calculated to be 6.20% (down from 7.05% for 2012-13).
The benchmark interest rate is the same as the Indicator Lending Rates – Standard Bank Variable Housing Loans Interest Rate last published by the Reserve Bank of Australia before the start of the income year: s 109N(2) of the ITAA 1936. For the 2013-14 year, this is based on the rate for May 2013, published recently by the Reserve Bank. Presumably, the Tax Office will confirm the benchmark interest rate in a Taxation Determination as per its normal practice.
[LTN 113, 14/6/13]