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  • Division 7A administrative relief for minimum yearly repayments

    We have announced a streamlined process to apply for administrative relief for taxpayers affected by COVID-19 who are unable to make the minimum yearly repayments (MYR) on their Division 7A loans by the end of the lender’s 2019–20 income year.

    When there is a complying loan agreement between a private company and its shareholder (or an associate of the shareholder), the borrower must typically pay the MYR by the end of the private company’s income year. The borrower needs to make these repayments to avoid being taxed on an unfranked dividend.

    If you are concerned that you are unable to meet your repayments for the private company’s 2019–20 income year, you may be able to apply for an extension of time under the streamlined application process.

    However, you must make up the shortfall of your MYR by 30 June 2021.

    We encourage you to review information available on our website or speak to your tax professional to determine your eligibility for this support.

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    Last modified: 03 Jul 2020QC 63106