New Div7A Benchmark Interest Rate – 2026 Financial Year

Written By Debbie Grace

The ATO has announced the new rate applicable to any Div7A loans for FY26 to be 8.37%. This is down from the FY25 rate of 8.77%.

Any existing Div7a loan arrangements will automatically have calculations adjusted for this rate change which will also reduce the minimum yearly repayments required.

For those who don’t have an existing borrowing from their entity but are considering drawing down funds, please be aware of the interest rate that could apply to those borrowings.

As always, we recommend contacting our office to discuss all implications of borrowings from your business entity.

Debbie Grace
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