Home Forums Money matters Dividend payments .. help! Reply To: Dividend payments .. help!

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james’s reply led me to https://www.ato.gov.au/business/private-company-benefits—division-7a-dividends/in-detail/division-7a—loans/ which looks highly relevant

Meaning of ‘loan’ under Division 7A
Division 7A extends the meaning of ‘loan’ to include:

  • an advance of money

Loans that are treated as dividends
A loan will be deemed to be a dividend by Division 7A if:

  • it is not fully repaid before the private company’s lodgment day for the year when the loan is made. A private company’s lodgment day is the earlier of the due date for lodgment, or the actual date of lodgment of the private company’s income tax return for the income year