Private use of assets

The use of a company asset by a shareholder or their associate, or the transfer of a company asset to a shareholder or their associate, may be treated as a Division 7A dividend.

Such arrangements are treated as payments for the purposes of Division 7A.

The first time the asset is provided by the company is considered the time the payment is made. However, if the right to use continues into another income year, the provision of the asset for use in the subsequent year is treated as being a separate payment made at the start of that year.

See also:

• Can the use of assets (other than a transfer of property) be treated as a payment?

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• Trust payments and other benefits