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 …