The following payments and other benefits are not treated as Division 7A dividends:
- loans and other payments repaid before company's lodgment day for the year in which the payment or loan occurred
- amounts that are treated as assessable income or excluded from being assessable income under another provision of the income tax law
- payments that discharge an obligation of the private company to pay money that are consistent with the two parties dealing at arm’s length
- complying loans for the purpose of Division 7A
- payments that are converted to complying loans for the purpose of Division 7A before the private company's lodgment day
- loans made by the private company in the ordinary course of its business on the usual terms it makes similar loans to parties at arm's length
- payments (but not loans or debts forgiven) to shareholders or their associates in their capacity as an employee – Fringe benefits tax (FBT) may apply instead of Division 7A (see Division 7A and fringe benefits tax)
- loans solely for the purpose of enabling the shareholder or their associate to acquire certain shares or rights in the company under an employee share scheme
- payments or loans to shareholders or their associates that are companies except where the company shareholder or associate is trustee of a trust
- certain retirement exemption payments
- a distribution by a liquidator in the course of winding-up a company
- minor use of a company asset – where the value of the use is under $300
- otherwise deductible usage – that is, had the shareholder or their associate paid for the use of the asset they could have claimed the cost as an income tax deduction
- the use of certain residences.
NextCertain payments and other benefits are specifically excluded from being treated as Division 7A dividends.