Weekly Tax Highlights - 4th - 8th May 1998

FBT benchmark interest rate for 1998/98 - The benchmark interest rate for the FBT year commencing 1 April 1998 is 6.70%. This is the rate used to calculate the taxable value of loan fringe benefits and is also used for calculating car fringe benefits under the operating cost method, TD98/6.

Dividend and franking credit anti-avoidance proposals outstanding from 1997 Budget - The ATO advises that the proposed dividend and franking credit anti-avoidance measures dealing with proposed debt dividend rules for trusts and the related payments rule that are still outstanding from last year's Federal Budget, should be included in Taxation Laws Amendment Bill (No 5) 1998, which is likely to be introduced in the Winter Sittings of Parliament.