ATO Compliance
Division 7A Loan Calculator
Calculate minimum repayments & generate a complying loan agreement
What is Division 7A? Under s.109 ITAA 1936, loans from a private company to shareholders/associates are deemed unfranked dividends unless documented as a complying loan. A complying Div 7A loan must be in writing, charge at least the ATO benchmark interest rate, and meet minimum annual repayments over a maximum term of 7 years (unsecured) or 25 years (secured).
Loan Details
2025–26 rate: 8.77% p.a.
Parties (for Loan Agreement)
Div 7A Calculation Results
Loan Amount
–
Principal
Min Annual Repayment
–
Must pay by 30 June
Total Interest
–
Over loan term
Minimum Annual Repayment Schedule
| Year | Opening Balance | Interest | Repayment | Principal | Closing Balance |
|---|
Legal Disclaimer: The complying loan agreement generated is a template only and does not constitute legal advice. Div 7A obligations are complex — failure to comply results in amounts being treated as unfranked dividends. The ATO benchmark rate must be verified each year at ato.gov.au. Please consult A One Accountants before use.
