Blog tagged as Division 7A

Mixed personal and business spending is a records problem for a sole trader but can become a Division 7A deemed dividend for a company, so fixing it before year-end matters more than most owners realise.

Informal money movements between a company and its directors can accidentally trigger Division 7A, turning a simple withdrawal into taxable income at the director's personal rate. This guide explains what triggers it, how to structure a compliant loan, and why the fix depends on timing.