Division 7A agreements

We can complete the required documentation for either secured or unsecured loan agreements for the purpose of Division 7A.

Our standard documentation is for an unsecured loan.

Unless otherwise instructed, the documentation provides for the maximum time period to repay a loan and the minimum interest rate required by the rules.

If you want to talk with us about the longer term secured Division 7A loan agreements, please do not hesitate to contact us.

Package Price: $275.00 (unsecured)

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Telephone Tricia Shales on 02 8915 4949

Division 7A agreements

  • Whatever term is chosen, Division 7A can set a different term. The loan agreement adopts the Div 7A term. If the loan is not secured by mortgage, it must be repaid no later than 7 years from its date.
  • Interest must be paid at a rate of not less than the "benchmark interest rate" set by Section 109N(2) of the ITAA 1936. You can choose not to nominate a rate and rely on the "benchmark interest rate". If you nominate a rate, the loan agreement adopts the "benchmark interest rate" if it is higher than that rate.
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    FBT may also be payable if the nominated rate or "benchmark interest rate" is less than the loan FBT rate.