Division 7A Lodgment Day Checklist (2025-26)
Last reviewed:
Primary tax-year context: 2025-26
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
Division 7A compliance often fails on documentation and timing, not math.
Use this checklist before your company’s lodgment day.
Lodgment day checklist
- Written loan agreement in place
- Agreement executed by lodgment day for the relevant year.
- Required terms included
- Principal amount
- Benchmark interest rate mechanism
- Maximum term (7 years unsecured, 25 years secured)
- Repayment obligations
- Security documentation (if 25-year term)
- Registered mortgage over real property
- Evidence supporting required security value tests
- MYR calculation retained
- Year-by-year working papers
- Benchmark rate used for each year
- Payment evidence retained
- Bank statements
- General ledger entries
- Loan account reconciliation
- 30 June repayment check completed
- Confirm full MYR paid by 30 June
- Document any shortfall and adviser actions
Why this matters
If conditions are not met, all or part of the loan may be treated as a deemed unfranked dividend. That can create personal tax with no franking credits.
Fast workflow
- Recalculate with the Division 7A calculator.
- Compare with accounting ledger and bank evidence.
- Resolve gaps before return lodgment.