Accessing private company money or assets?

Learn what the common mistakes are and how to avoid an unexpected tax bill.

Running a small business through a private company means you have a lot to think about, particularly when it comes to the rules about accessing money and assets from your private company.

One such rule is Division 7A – an integrity rule that applies to prevent private company profits from being distributed to shareholders or their associates tax-free.

The common mistakes ATO see with Division 7A are often simple in nature and include:

• incorrect accounting for the use of company assets by shareholders and their associates
• loans to shareholders and their associates made without complying loan agreements
• errors in making minimum yearly repayments on complying loans.

The ATO is launching a series of webinars and articles to help you decode these rules and avoid the common mistakes.

The following resources are available to help you understand Division 7A:

• Use ATO’s Division 7A calculator and decision tool to see if Division 7A applies and to calculate the minimum yearly repayment on a complying loan.
• Bookmark or favourite our private company benefits Division 7A dividends web content, so you can easily access our comprehensive information when you need it.
• Learn more about how to use business money and assetsExternal Link in our self-paced, free online learning resource Essentials to strengthen your small business.
• Tax time essentials, learning resources, tools and services are available to support small business.