Where can I enter the loan amount and date when completing a Div 7A loan agreement?

Key words: Div 7A, Division 7A, drawdown acknowledgment, prevent deemed dividend 


I am completing a Div 7A loan agreement and there is no question about the loan amount and date. Where can I enter these details?


The Division 7A Loan Agreement creates the "facility agreement" under which the company may lend amounts of moneys (i.e. make a "drawdown") in future financial years on terms that would help prevent a "deemed dividend" from arising. For example, it outlines provisions relating to maximum terms depending on the type of loan (simply put, secured/unsecured) and minimum yearly repayments. 


The Drawdown Acknowledgment for a Div 7A Loan is the document used to acknowledge amounts lent under the above Loan Agreement. In the Drawdown Acknowledgment, you can specify details of the loan such as loan amounts and dates. Each Drawdown constitutes a separate loan that is made on the terms and conditions of the Loan Agreement - i.e. they are not to be amalgamated unless the parties agree in writing. 


Further Information

A general overview of Division 7A

How to set up Division 7A loan on NowInfinity


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