Division 7A Calculator and Decision Tool

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 ATO’s updated Div 7A calculator and decision tool is here.

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

Example output for the ATO's Division 7A calculator and decision tool page 1
Example output for the ATO's Division 7A calculator and decision tool page 2
Example output for the ATO's Division 7A calculator and decision tool page 3

The ATO’s updated Div 7A calculator and decision tool is here.

This page was last modified 2023-07-04