The benchmark interest rate for the 2019/20 income year for Div 7A purposes is 5.37% pa.
This is relevant to private company loans made or deemed to have been made after 3 December 1997 and before 1 July 2019, and to trustee loans made after 11 December 2002 and before 1 July 2019.
It is used to:
- determine if a loan made in the 2018/19 income year is taken to be a dividend (ITAA 1936 s 109N(1)(b) and as applicable, s109D(1) or s109XB); and
- calculate the amount of the minimum yearly repayment for the 2019/20 income year on an amalgamated loan taken to have been made before 1 July 2019 (ITAA 1936 s 109E(5)).
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*Source: ATO website, 30 August 2019.