The Australian Taxation Office (ATO) has recently announced an increase in the Division 7A benchmark interest rate. This update could have implications for loans, payments, and arrangements covered by Division 7A of the Income Tax Assessment Act.
The Division 7A benchmark interest rate will be 8.27% per annum. This represents an increase from the previous rate of 4.77% per annum. It is important to note that this change could affect the calculation of interest on loans or payments made to shareholders or associates, as well as other financial arrangements.
We recommend that you review your existing loans, agreements, and any other financial arrangements to ensure they remain compliant with the updated benchmark interest rate. If adjustments are needed, we encourage you to take the necessary steps to address these changes as soon as possible.
Our team of Business Advisors are available to assist you in navigating these changes and ensuring that your financial arrangements are in line with the updated Division 7A benchmark interest rate. Please feel free to reach out and schedule a consultation or if you have any questions or concerns regarding this update.
We understand that regulatory changes can be complex, but we are committed to providing you with the guidance and support you need to ensure compliance and make informed financial decisions.
