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  • Do you have a loan from your private company?

     

    25 June 2021

    You may have received money from your private company as a 'Division 7A loan'.

    You have a Division 7A loan if it complies with all the requirements. You can read about these on our website.

    If your loan doesn't comply, it may treated as an assessable dividend.

    One of the terms of a Division 7A loan is that you must make minimum yearly repayments (MYR) before the end of the lender’s income year, generally 30 June.

    You may be facing a challenge to pay by the end of the 2020–21 income year due to the ongoing effects of COVID-19.

    You can now request an extension of the repayment period to make the MYR for this financial year using our streamlined online application. The extended due date to pay in full is 30 June 2022.

    A similar extension was available for the 2019–20 MYR. If you obtained that extension, you must pay in full by 30 June 2021.

    If you don’t meet this deadline, you will need to amend your 2019-20 tax return to include a dividend, unless you apply for and receive a further extension of time for the 2019-20 MYR using the standard process.

    The extension available through the streamlined online application for the 2019–20 and 2020–21 MYR is not intended to be available in the 2021-22 income year and beyond.

    Remember, registered tax agents and BAS agents can help you with your tax.

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