What is the minimum interest rate?
The interest rate on the loan for each year after the year in which the loan was made must be greater than or equal to the benchmark interest rate for each year. The benchmark interest rate for an income year is the 'indicator lending rates - bank variable housing loans interest rate' last published by the Reserve Bank of Australia before the start of the income year.
The Division 7A - benchmark interest rates is published annually by the Australian Taxation Office (ATO).
For an explanation on how to find the benchmark interest rate for private companies with substituted accounting periods, refer to Taxation Determination TD 2001/18.