The Division 7A calculator and decision tool published by the Tax Office has been updated to include loan calculations for the 2021-22 year going into 2023.
For existing and arising loans in 2021-22 captured by complying loan agreement the calculator tool applies the interest rate for 2022-23 which is 4.77%.
From 1 July 2023, the benchmark interest rate is 8.27%,
The benchmark interest rate for Div 7A complying loans has been relatively stable for the past three years.
The benchmark interest rate in each of the 2020-21 and 2021-22 was 4.52%.
For full details of historical benchmark interest rates and related information see ATO Div 7A Benchmark Interest Rate.
The tool comprises two components:
- questionnaire-based decision tool to determine whether a private company payment, loan or debt foregiveness should be treated as a deemed unfranked dividend
- complying loan agreement calculator which determines
- the minimum yearly loan repayment
- interest payable for the income year
- closing loan balance
Example Output: Div 7A calculator and decision tool
This page was last modified 2023-07-04