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: (1) be in writing before the company’s lodgement day, (2) charge at least the ATO benchmark interest rate, and (3) meet minimum annual repayments over a maximum term of 7 years (unsecured) or 25 years (secured over real property).
Loan Details
2025-26 rate: 8.77% p.a.
Parties (for Loan Agreement)
Div 7A Calculation Results
Loan Amount
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Principal
Min Annual Repayment
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Must pay by 30 June each year
Total Interest
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Over loan term
Minimum Annual Repayment Schedule
Important Legal Disclaimer – A One Accountants Pty Ltd: The complying loan agreement generated by this tool is a template only and does not constitute legal advice. Division 7A obligations are complex and failure to comply results in amounts being treated as unfranked dividends, potentially with significant tax consequences. The ATO benchmark rate must be verified each year at ato.gov.au. Minimum repayment shortfalls must also be tracked. This template should be reviewed by A One Accountants Pty Ltd or your solicitor before use. Please consult us if you require specific Div 7A advice. A One Accountants Pty Ltd accepts no liability for any reliance on this document.