Before accessing private company money and benefits, you and your clients need to be across Division 7A. Division 7A is an integrity rule that prevents private company profits from being provided to shareholders or their associates tax-free. When it applies, the recipient of the loan, payment or other benefit will be deemed to have been paid an unfranked dividend that will be included in their assessable income.
This year we’ve delivered a series of Division 7A webinars, focused on reviewing the basics and highlighting the common mistakes we see.
Our final Division 7A webinarExternal Link for 2024 is now available. It focuses on the Commissioner's discretion under section 109RB and the limited circumstances in which the Commissioner may exercise it to disregard or alter the operation of Division 7A. It also includes real examples of where the discretion has been considered.
You can access the recorded versions of our other webinars, which provide practical guidance on managing Division 7A obligations:
We also recommend that you bookmark Private company benefits – Division 7A dividends and subscribe to our Tax professionals newsletterExternal Link, for alerts and articles about Division 7A.