Presented by: Ken Mansell
After years and years of delays, the government has finally released its proposed changes to Division 7A
These include ditching the current seven and 25 year loans models with a single 10 year loan, different calculation methods for repayments (and the timing of those repayments), an annual benchmark interest rate matching the small business and overdraft indicator lending rate (currently 8.3%), no requirement for a formal written loan agreement (but “evidence” is required), the ability for recipients to self correct mistakes without informing the Commissioner, removing the distributable surplus calculations and many other changes… and all this starts on 1 July 2019.
Also, after eight years of arguing with the Commissioner about whether unpaid present entitlements (UPEs) fall within Div 7A, the argument is over. UPEs are to be treated just like a loan.
In this session we will consider all these changes to Division 7A as well as a few other announcements about Division 7A that have happened recently.
Recorded 20 Nov 2018
1.0 CPD Hour