On 17 November 2022, the Australian Taxation Office (ATO) published an updated version of Practical Compliance Guideline (PCG) 2017/2 related to the eligibility criteria for applying simplified transfer pricing record keeping options for low level related party inbound and outbound loans.
PCG 2017/2 has been updated to provide a maximum interest rate of 5.65% for the simplified options for low-level inbound and outbound loans for the 2022-23 income year. This 5.65% rate also serves as the minimum interest rate for low-level outbound loans for the 2022-23 year. The interest rates over the recent income years are summarized below:
| Income year | Inbound loans | Outbound loans |
| 2020-21 | 1.79% | 1.79% |
| 2021-22 | 1.83% | 1.83% |
| 2022-23 | 5.65% | 5.65% |
