22 October 2018
Media Release - #2018023, 2018

Consultation on improvements to Division 7A of the Income Tax Assessment Act 1936

The Assistant Treasurer, the Hon Stuart Robert MP, today released for public consultation a paper on the amendments to improve the integrity and operation of Division 7A of the Income Tax Assessment Act 1936.

Division 7A is an integrity rule that is designed to prevent shareholders from using private company profits without paying tax at their marginal tax rates.

The amendments draw on recommendations from the Board of Taxation and will provide clearer rules for taxpayers and assist them in meeting their compliance obligations, while maintaining the overall integrity and policy intent of Division 7A.

The Consultation Paper seeks comments on the proposed approach to implementing the amendments.

“The Government is committed to help taxpayers comply with their Division 7A obligations by simplifying and clarifying the arrangements,” Minister Robert said.

In particular, the Consultation Paper seeks stakeholders’ views on unpaid present entitlements (UPEs) being brought within the scope of Division 7A following the 2018-19 Budget announcement.

The Consultation Paper is available on the Treasury website. Interested stakeholders are encouraged to provide their views by Wednesday, 21 November 2018.

Submissions can be emailed to Div7A@treasury.gov.au during the consultation period.