Division 7A – minimum yearly repayments

May 27, 2024

The ATO has issued guidance on avoiding unexpected tax consequences regarding Div 7A loan repayments. When making minimum yearly repayments (MYR), borrowers need to:

  • start repayments in the income year after the complying loan was made
  • use the correct benchmark interest rate to calculate the MYR for the current year
  • make their required payments on the loan by the due date – the end of the income year (usually 30 June).

The  benchmark interest rate  used to calculate the MYR changes annually. The rate for the current income year ending 30 June 2024 is 8.27%.