Division 7A Calculator
Calculate minimum yearly repayments for a Division 7A complying loan.
The earlier of the due date for lodgment, or the actual lodgment date, of the company's tax return for the year the loan was made. Repayments must be made by this date to count for that income year.
Repayments Made This Year
Log actual repayments made during Year 1 to check whether the minimum yearly repayment has been met, the same way the ATO's own calculator tests compliance.
Year-by-Year Repayment Schedule
| Year | Payment | Principal | Interest | Admin Fee | Balance |
|---|
- The minimum yearly repayment must be made by the company's lodgment day.
- A complying Division 7A loan agreement must be signed before the company lodges its tax return for the year the loan was made — agreements signed later don't qualify.
- Only a registered mortgage over real property qualifies a loan for the 25-year secured term — a personal guarantee or charge over other assets does not.
- Failure to make minimum repayments results in the shortfall being treated as an unfranked dividend.
- Interest must be charged at or above the ATO benchmark rate for that income year.
For more information, refer to the ATO website by clicking here.
This calculator is provided for general informational purposes only and does not constitute tax, financial, or legal advice. The results are estimates based on the information you enter and the assumptions built into this tool, and should not be relied upon for compliance, lodgment, or decision-making purposes. Division 7A rules are complex and depend on your individual circumstances, including the structure of your loan, prior repayment history, and changes in legislation or ATO guidance. You should not act, or refrain from acting, on the basis of this calculator alone. Please contact Varion or another qualified professional to confirm and verify these figures and how they apply to your specific situation before making any decisions.