Log inStart free trial
Free trial

Division 7A

Calculate every Division 7A loan in one place

AccountKit’s Division 7A calculator works out the interest and minimum yearly repayment for every loan in a client group, whenever you look rather than only at tax time. It checks each loan against the Xero ledger, lets you round the dividend, and posts the interest and dividend journal to Xero.

Start free trialBook a demo

Included in the base subscription

Australia only

Division7A CalculatorBalance at: 01/10/2026
AllBull FamilyShowing 7 / 7
ClientYear of LoanBalanceStatus
Bull Antics Pty LtdXero2020/21$ 49,285.00In balance
Bull Antics Pty LtdXero2022/23$ 24,125.00In balance
Bull Antics Pty LtdXero2024/25$ 41,066.00In balance
Bull Antics Pty LtdXero2025/26$ 28,400.00In balance
Bull Nominees Pty LtdXero2024/25$ 19,561.00In balance
Bullish Pty LtdXero2018/19$ 0.00Completed
Bull Buckets Pty LtdXero2022/23$ 20,150.00Out of balance

Illustrative view. Sample client groups and sample figures.

  • A workbook nobody checks

    The practice’s own spreadsheet can carry last year’s benchmark rate or a formula someone broke, and nothing flags it.

  • The ATO calculator starts from scratch

    It gets the sums right, but change one repayment or the dividend and you’re keying in the whole loan again.

  • So it waits for the tax return

    Either way it’s slow, so the work happens at year end, after 30 June, when it’s too late for the client to repay any more.

One year end, start to finish

From the Xero ledger to a posted dividend

This is Bull Antics’ 2025/26 year end, with six years of loans to Ryan and Ashlee Bull. The figures are made up, but the benchmark rates are the ATO’s and each step works the way the tool does.

Every loan year on one page

Each year’s loan has its own column, with the establishing balance in mint, and every year since shows the repayments, dividend, interest and balance. The years ahead are forecast, for dividend planning. The orange plane says there’s still work to do before 2025/26 can post.

Each year’s rate and minimum repayment

Open a loan and every year sits in order, with the ATO benchmark rate and the minimum repayment worked out for you. Earlier years show their journals posted. 2025/26 still has items in the Xero ledger to sort out.

Match the year’s payments from Xero

Under the calculation schedule is the loan account from Xero. Assign each credit as a repayment and the interest recalculates by days, while the minimum still owing at 30 June drops. A new drawing belongs to this year’s new loan, so recode it in Xero.

Round the dividend to the figure you want

Each loan’s minimum comes through as the current dividend. Add a top-up to make it a round number, and update. Every schedule recalculates, and the plane turns green.

Preview the journal, then post it to Xero

The interest and the dividend for every loan go in one journal on 30 June. If the dividend changes later, void the journal, update the amount and post it again, with no spreadsheet to rebuild.

  • Every loan year on one page
  • Each year’s rate and minimum repayment
  • Match the year’s payments from Xero
  • Round the dividend to the figure you want
  • Preview the journal, then post it to Xero

Every loan year on one page

Each year’s loan has its own column, with the establishing balance in mint, and every year since shows the repayments, dividend, interest and balance. The years ahead are forecast, for dividend planning. The orange plane says there’s still work to do before 2025/26 can post.

Bull Antics Pty LtdDivision 7A loans to R & A Bull
Schedule Summary
Financial
Year		LoanTotal2020/212021/222022/232023/242024/252025/26
2020/21Opening
balance		$ 150,000.00$ 150,000
2021/22[4.52%]RepaymentsDividendInterestBalance$ 0.00$ 25,474.00$ 6,780.00$ 195,306.00$ 0$ 25,474$ 6,780$ 131,306$ 64,000
2022/23[4.77%]RepaymentsDividendInterestBalance$ 0.00$ 36,649.00$ 9,315.00$ 206,472.00$ 0$ 25,680$ 6,263$ 111,889$ 0$ 10,969$ 3,052$ 56,083$ 38,500
2023/24[8.27%]RepaymentsDividendInterestBalance$ 0.00$ 47,920.00$ 17,074.00$ 188,376.00$ 0$ 28,224$ 9,253$ 92,918$ 0$ 12,232$ 4,638$ 48,489$ 0$ 7,464$ 3,183$ 34,219$ 12,750
2024/25[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 51,019.00$ 16,519.00$ 200,076.00$ 0$ 28,537$ 8,148$ 72,529$ 0$ 12,392$ 4,252$ 40,349$ 0$ 7,576$ 3,001$ 29,644$ 0$ 2,514$ 1,118$ 11,354$ 46,200
2025/26[8.37%]RepaymentsDividendInterestBalance$ 0.00$ 59,584.00$ 16,744.00$ 185,636.00$ 0$ 28,332$ 6,070$ 50,267$ 0$ 12,283$ 3,377$ 31,443$ 0$ 7,498$ 2,481$ 24,627$ 0$ 2,484$ 950$ 9,820$ 0$ 8,987$ 3,866$ 41,079$ 28,400
2026/27[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 65,627.00$ 16,277.00$ 136,286.00$ 0$ 28,487$ 4,408$ 26,188$ 0$ 12,371$ 2,757$ 21,829$ 0$ 7,564$ 2,159$ 19,222$ 0$ 2,510$ 861$ 8,171$ 0$ 9,095$ 3,602$ 35,586$ 0$ 5,600$ 2,490$ 25,290
2027/28[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 65,623.00$ 11,948.00$ 82,611.00$ 0$ 28,484$ 2,296$ 0$ 0$ 12,371$ 1,914$ 11,372$ 0$ 7,563$ 1,685$ 13,344$ 0$ 2,510$ 716$ 6,377$ 0$ 9,095$ 3,120$ 29,611$ 0$ 5,600$ 2,217$ 21,907

Illustrative AccountKit Division 7A tool. Sample client group and sample figures; benchmark rates from the ATO.

Each year’s rate and minimum repayment

Open a loan and every year sits in order, with the ATO benchmark rate and the minimum repayment worked out for you. Earlier years show their journals posted. 2025/26 still has items in the Xero ledger to sort out.

Bull Antics Pty LtdFunds drawn to pay down the home loan
2021 LoanUnsecured950/001 Loan - Div7a - R & A Bull (2020/21)
Year 02020/21Establishing Balance:$ 150,000.00
Year 12021/22Benchmark Interest Rate:4.52%Minimum Repayment:$ 25,474.00Journals postedRepayments:$ 25,474.00Interest:$ 6,780.00Closing Balance:$ 131,306.00
Year 22022/23Benchmark Interest Rate:4.77%Minimum Repayment:$ 25,680.00Journals postedRepayments:$ 25,680.00Interest:$ 6,263.00Closing Balance:$ 111,889.00
Year 32023/24Benchmark Interest Rate:8.27%Minimum Repayment:$ 28,224.00Journals postedRepayments:$ 28,224.00Interest:$ 9,253.00Closing Balance:$ 92,918.00
Year 42024/25Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,537.00Journals postedRepayments:$ 28,537.00Interest:$ 8,148.00Closing Balance:$ 72,529.00
Year 52025/26Benchmark Interest Rate:8.37%Minimum Repayment:$ 28,332.00Xero issues to resolveRepayments:$ 28,332.00Interest:$ 6,070.00Closing Balance:$ 50,267.00
Year 62026/27Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,487.00ForecastRepayments:$ 28,487.00Interest:$ 4,408.00Closing Balance:$ 26,188.00
Year 72027/28Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,485.00ForecastRepayments:$ 28,484.00Interest:$ 2,296.00Closing Balance:$ 0.00

Illustrative AccountKit Division 7A tool. Sample client group and sample figures; benchmark rates from the ATO.

Match the year’s payments from Xero

Under the calculation schedule is the loan account from Xero. Assign each credit as a repayment and the interest recalculates by days, while the minimum still owing at 30 June drops. A new drawing belongs to this year’s new loan, so recode it in Xero.

Bull Antics Pty LtdFunds drawn to pay down the home loan
2021 LoanUnsecured950/001 Loan - Div7a - R & A Bull (2020/21)
Year 42024/25Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,537.00Journals postedRepayments:$ 28,537.00Interest:$ 8,148.00Closing Balance:$ 72,529.00
Year 52025/26Benchmark Interest Rate:8.37%Minimum Repayment:$ 28,332.00Xero issues to resolveRepayments:$ 28,332.00Interest:$ 6,070.00Closing Balance:$ 50,267.00

Calculation Schedule

DateDescriptionRepaymentInterestBalance
30/06/25Opening balance$ 72,529
30/06/26Interest to 30 June$ 6,070$ 78,599
30/06/26Minimum repayment$ 28,332$ 50,267
Total at 30 June 2026$ 28,332$ 6,070$ 50,267

Xero Ledger

DateDescriptionAmount
01/07/25Opening balance$ 72,529
14/08/25Drawings$ 3,200 Dr
28/11/25Repaid to the company$ 6,500 Cr
06/02/26Repaid on our advice$ 15,000 Cr
Xero balance at 30 June
$ 54,229
Division 7A balance
$ 50,267
Out of balance
$ 3,962
Year 62026/27Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,487.00ForecastRepayments:$ 28,487.00Interest:$ 4,408.00Closing Balance:$ 26,188.00
Year 72027/28Benchmark Interest Rate:8.77%Minimum Repayment:$ 28,485.00ForecastRepayments:$ 28,484.00Interest:$ 2,296.00Closing Balance:$ 0.00

Illustrative AccountKit Division 7A tool. Sample client group and sample figures; benchmark rates from the ATO.

Round the dividend to the figure you want

Each loan’s minimum comes through as the current dividend. Add a top-up to make it a round number, and update. Every schedule recalculates, and the plane turns green.

Bull Antics Pty LtdDivision 7A loans to R & A Bull
Schedule Summary
Financial
Year		LoanTotal2020/212021/222022/232023/242024/252025/26
2020/21Opening
balance		$ 150,000.00$ 150,000
2021/22[4.52%]RepaymentsDividendInterestBalance$ 0.00$ 25,474.00$ 6,780.00$ 195,306.00$ 0$ 25,474$ 6,780$ 131,306$ 64,000
2022/23[4.77%]RepaymentsDividendInterestBalance$ 0.00$ 36,649.00$ 9,315.00$ 206,472.00$ 0$ 25,680$ 6,263$ 111,889$ 0$ 10,969$ 3,052$ 56,083$ 38,500
2023/24[8.27%]RepaymentsDividendInterestBalance$ 0.00$ 47,920.00$ 17,074.00$ 188,376.00$ 0$ 28,224$ 9,253$ 92,918$ 0$ 12,232$ 4,638$ 48,489$ 0$ 7,464$ 3,183$ 34,219$ 12,750
2024/25[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 51,019.00$ 16,519.00$ 200,076.00$ 0$ 28,537$ 8,148$ 72,529$ 0$ 12,392$ 4,252$ 40,349$ 0$ 7,576$ 3,001$ 29,644$ 0$ 2,514$ 1,118$ 11,354$ 46,200
2025/26[8.37%]RepaymentsDividendInterestBalance$ 21,500.00$ 38,084.00$ 15,930.00$ 184,822.00$ 21,500$ 6,832$ 5,256$ 49,453$ 0$ 12,283$ 3,377$ 31,443$ 0$ 7,498$ 2,481$ 24,627$ 0$ 2,484$ 950$ 9,820$ 0$ 8,987$ 3,866$ 41,079$ 28,400
2026/27[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 65,165.00$ 16,206.00$ 135,863.00$ 0$ 28,025$ 4,337$ 25,765$ 0$ 12,371$ 2,757$ 21,829$ 0$ 7,564$ 2,159$ 19,222$ 0$ 2,510$ 861$ 8,171$ 0$ 9,095$ 3,602$ 35,586$ 0$ 5,600$ 2,490$ 25,290
2027/28[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 65,163.00$ 11,911.00$ 82,611.00$ 0$ 28,024$ 2,259$ 0$ 0$ 12,371$ 1,914$ 11,372$ 0$ 7,563$ 1,685$ 13,344$ 0$ 2,510$ 716$ 6,377$ 0$ 9,095$ 3,120$ 29,611$ 0$ 5,600$ 2,217$ 21,907

Illustrative AccountKit Division 7A tool. Sample client group and sample figures; benchmark rates from the ATO.

Preview the journal, then post it to Xero

The interest and the dividend for every loan go in one journal on 30 June. If the dividend changes later, void the journal, update the amount and post it again, with no spreadsheet to rebuild.

Bull Antics Pty LtdDivision 7A loans to R & A Bull
Schedule Summary
Financial
Year		LoanTotal2020/212021/222022/232023/242024/252025/26
2020/21Opening
balance		$ 150,000.00$ 150,000
2021/22[4.52%]RepaymentsDividendInterestBalance$ 0.00$ 25,474.00$ 6,780.00$ 195,306.00$ 0$ 25,474$ 6,780$ 131,306$ 64,000
2022/23[4.77%]RepaymentsDividendInterestBalance$ 0.00$ 36,649.00$ 9,315.00$ 206,472.00$ 0$ 25,680$ 6,263$ 111,889$ 0$ 10,969$ 3,052$ 56,083$ 38,500
2023/24[8.27%]RepaymentsDividendInterestBalance$ 0.00$ 47,920.00$ 17,074.00$ 188,376.00$ 0$ 28,224$ 9,253$ 92,918$ 0$ 12,232$ 4,638$ 48,489$ 0$ 7,464$ 3,183$ 34,219$ 12,750
2024/25[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 51,019.00$ 16,519.00$ 200,076.00$ 0$ 28,537$ 8,148$ 72,529$ 0$ 12,392$ 4,252$ 40,349$ 0$ 7,576$ 3,001$ 29,644$ 0$ 2,514$ 1,118$ 11,354$ 46,200
2025/26[8.37%]RepaymentsDividendInterestBalance$ 21,500.00$ 40,000.00$ 15,930.00$ 182,906.00$ 21,500$ 7,000$ 5,256$ 49,285$ 0$ 13,000$ 3,377$ 30,726$ 0$ 8,000$ 2,481$ 24,125$ 0$ 3,000$ 950$ 9,304$ 0$ 9,000$ 3,866$ 41,066$ 28,400
2026/27[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 64,499.00$ 16,037.00$ 134,444.00$ 0$ 27,930$ 4,322$ 25,677$ 0$ 12,089$ 2,694$ 21,331$ 0$ 7,410$ 2,115$ 18,830$ 0$ 2,378$ 815$ 7,741$ 0$ 9,092$ 3,601$ 35,575$ 0$ 5,600$ 2,490$ 25,290
2027/28[8.77%]RepaymentsDividendInterestBalance$ 0.00$ 64,496.00$ 11,786.00$ 81,734.00$ 0$ 27,928$ 2,251$ 0$ 0$ 12,089$ 1,870$ 11,112$ 0$ 7,409$ 1,651$ 13,072$ 0$ 2,378$ 678$ 6,041$ 0$ 9,092$ 3,119$ 29,602$ 0$ 5,600$ 2,217$ 21,907

Illustrative AccountKit Division 7A tool. Sample client group and sample figures; benchmark rates from the ATO.

Who it’s for

Built for practices with private company groups

Practices whose clients run a private company alongside a family trust or individual shareholders, where money moves from the company to the people who own it. One client group can carry several loans at once.

For the current benchmark rate and a worked minimum yearly repayment, read our guide to Division 7A loans.

How often it comes round

Every income year, for every loan, for up to seven years unsecured or twenty-five secured over real property.

From 1 July
The new benchmark rate applies to every loan.
By 30 June
The minimum yearly repayment has to be paid.
At year end
Interest is journalled and any shortfall dealt with.
Before lodgment
A written agreement covers any new loan made in the year.

Posts to Xero

The interest and dividend journal goes straight to Xero

One journal on 30 June covers every loan’s interest and the dividend set off against it, so each loan account in the company’s Xero file matches its schedule.

AccountKitJournal previewInteractive preview · sample data
Bull Antics Pty LtdJournal preview
Journal preview
AccountKit journalBull Antics Pty Ltd30 Jun 2026 · Div7a entries for 2025/26
AccountDebitCredit
Loans - Div7a - R & A Bull15,930.00
Interest received - Div7a15,930.00
Dividend issued40,000.00
Loans - Div7a - R & A Bull40,000.00
Total55,930.0055,930.00

Interactive demonstration with sample data, based on the AccountKit interface.

Xero · Bull Antics Pty Ltd

Manual journal, 30 Jun 2026

Posted

Illustrative journal with sample entities. Account names are examples.

Xero App Store reviews

What practices say about it

Read all 83 reviews

★★★★★

…Div7A is sorted too (no more manual spreadsheet)…

Shannon PattersonReview on the Xero App Store, June 2023

★★★★★

AccountKit saves us hours each month with the inter-entity loan tool, equipment finance and especially the Div7A tool at year end.…

Kirra SkeltonReview on the Xero App Store, September 2021

AccountKit is rated 5.0 out of 5 from 83 reviews on the Xero App Store.

Questions

What practices ask about Division 7A

Is the Division 7A tool available outside Australia?

No. The Division 7A tool is for Australian tax practices only, and isn’t available in the UK, New Zealand or US regions.

Does AccountKit decide whether a loan is caught by Division 7A?

No. The tool calculates the interest and minimum yearly repayment and prepares the journals. It assumes you have reviewed the loan against the legislation and ATO guidance and reached your own view.

What happens before the ATO publishes next year’s benchmark rate?

AccountKit can show forecast values. For future years without a published rate, it projects interest and dividends from the last released benchmark rate.

Can I add a loan that already has a schedule from earlier years?

Yes. Enter the date the loan account was last reconciled, and AccountKit calculates and posts entries from that date.

Can several years’ loans share one ledger account?

No. Each new year’s loan needs its own account. The tool can’t work from a single amalgamated loan balance.

What if the dividend changes after the journal is posted?

Void the journal, update the dividend and post it again. The schedules recalculate, so there’s no spreadsheet or ATO calculator to run again.

Do I need Xero to use the Division 7A calculator?

No. The calculations work for any client. When the company’s Xero file is connected, you can also reconcile the schedule with the ledger and post the journals to Xero.

Related tools

Tools that sit beside this one

See all 18 tools

Read the guideXero Tax and Workpapers with XPM: a year-end guide

Also in the toolkit

The heart of your firm

Run this year’s Division 7A schedules in AccountKit

Start a free 14-day trial and set up a loan for a real client, or book a demo to see the schedule with the team.

Start free trialBook a demo