# Division 7A Minimum Yearly Repayment Calculation

## Calculation

Using the formula: MYR = P * r / (1 - (1 + r) ^ -n)

Where:
- P = $50,000
- r = 8.77% = 0.0877
- n = 7 years

MYR = 50,000 × 0.0877 / (1 - (1.0877)^-7)

MYR = 4,385 / (1 - 0.5866)

MYR = 4,385 / 0.4134

MYR = $10,607.47

## Minimum Yearly Repayment

**$10,607.47**

## Controlling Authority

The controlling authority for the Division 7A minimum yearly repayment rule is the **Australian Taxation Office (ATO)**, operating under the authority of the *Income Tax Assessment Act 1936* (Cth), Division 7A.