Australia Sets 2016 Benchmark Interest Rate for Private Company Loans to Shareholders

On 29 June 2016, the Australian Commissioner of Taxation issued Taxation Determination (TD) 2016/11, which sets the benchmark interest rate for private company loans at 5.40% for the income year beginning 1 July 2016. The rate is used for determining required repayments of amalgamated private company loans to shareholders. If repayments do not meet or exceed the determined repayment amount, the…