A loan agreement is an agreement between two parties whereby one party (the lender) agrees to provide a loan to the other party (the borrower).
A Division 7A loan agreement is a loan agreement that covers certain payments or loans that are made or debts that are forgiven by a private (i.e. proprietary limited) company, and would otherwise be treated for tax purposes as assessable income of the recipient.
Division 7A of the Income Tax Assessment Act 1936 (Cth) prevents private companies from making tax free distributions to shareholders or their associates. Generally, it treats as unfranked dividends any amounts paid by a company to its shareholders or their associates, amounts lent by a company to its shareholders or their associates, and debts owed to a company by its shareholders or their associates that are forgiven. Such amounts would be assessable income of those shareholders or their associates.
Where a Division 7A loan agreement is in place between a private company and a shareholder or shareholder’s associate the terms of the loan agreement will negate the operation of Division 7A.
If a Division 7A Loan Agreement is not correct for your circumstances, please view our Loan Agreement template.
As a member, you can request unlimited legal documents to be drafted or reviewed for your business,
including this Division 7a – Loan Agreement. Our membership also provides unlimited legal advice
consultations, faster turnaround times and ongoing legal support for an affordable monthly fee.
Learn more about becoming a member today.
Get your
Division 7a – Loan Agreement
Free Document
Basic Division 7a – Loan Agreement template
Editable Word document that you can print
Self-serve online
Download your Division 7a – Loan Agreement instantly
costs and expenses, amendments, waiver and governing law
clauses.
Note: The Term should be 25 years (if the loan is secured in
full by a real property mortgage) or 7 years (if the loan is not
secured).
The document is 12 pages long and contains 7 clauses and 1
schedule.
Benefits of Choosing LegalVision
We know there are many online document websites and legal marketplaces to choose from. When you
choose LegalVision, you can rest assured we are always here to help you.
We are a commercial law firm with industry-leading client satisfaction scores (read our reviews!)
All of our templates are drafted by qualified lawyers and regularly reviewed.
We have assisted over 250,000 businesses.
You can email or call our team for a free consultation to discuss any legal questions.
Are you looking foranother document?
Asset Sale Contract
Bullying, Discrimination and Harassment Policy
Casual Employment Contract
Confidentiality Agreement
Consignment Agreement
Consultancy Agreement
Contractors Agreement
Deed of Dissolution – Partnership
Deed of Retirement – Partnership
Deed of Settlement – Termination of Employment or Contract
Heads of Agreement / Term Sheet – Sale of Business
Hire Agreement
Internet Use Policy
IP Licence Agreement
Letter of Demand
Letter of Termination of Employment – During Probation Period
Letter of Termination of Employment – Poor Performance
Letter of Termination of Employment – Redundancy
Loan Agreement
Minutes of Directors of Company Appointing Attorney to Sign Documents
Partner Visa Resource Guide
Partnership Agreement
Power of Attorney – Company
Promissory Note
Referral Agreement
Sale of Business Agreement
Service Agreement
Shareholders Agreement
Subcontractor Agreement
Website Privacy Policy
Website Terms of Use
Workplace Health and Safety Policy
Workplace Surveillance Policy
Contact us now
Fill out the form and we will contact you within one business day
What our clients say about us
Justin Moses , GC
The certainty around cost and timing are the two features of LegalVision’s membership that have had the biggest impact on our business.
Amber Turnbull , COO
LegalVision's lawyers maintain a consistently high quality of service, and their fixed-fee approach is a breath of fresh air.
Nathan Walsh , CEO
LegalVision’s deep legal expertise, tech-enabled approach and speed of delivery have had a significant positive impact on our business operation.
Nick Crocker , Partner
Having used LegalVision for 20+ transactions, large and small, we love their attention to detail, speed, and the quality of the whole team.
Karl Goodman , Owner
Having used LegalVision for four years, they continue overdelivering. They make you feel heard, understood and secure.
Michael Cleary , Co-founder
LegalVision’s membership has saved us time and money by having all our legal resources under one roof.
Cynthia Cheung , Head of Ops
The LegalVision team is exceptional. Every person we've met is super responsive and knowledgeable - and their Prism platform makes everything easier!
Vince Allen , Co-founder
We are grateful to the LegalVision team for their legal guidance, and we look forward to working with them again in the future.
Katrina Huergo , CFO
Big thanks to the LegalVision team for keeping the ball rolling and our team informed along the way.
How we help
our clients
Cost Certainty
We offer our clients a range of pricing options to suit their needs and provide transparency around legal costs. Our membership offers unlimited legal services for an affordable monthly fee.
Specialist Lawyers
LegalVision caters to a full range of commercial law needs. Our lawyers are specialists who bring extensive experience from working at leading law firms in Australia, the United Kingdom, New Zealand and across the world.
Responsive Timeframes
We understand that timing is critical, particularly for businesses that have a large number of legal projects. LegalVision is committed to delivering our services within short timeframes that fit the commercial needs of our clients.
Custom Technology
We have built our tech stack from the ground up. Our team of developers build technology to help streamline the workflow of our legal team and improve the client experience for our members.
