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AustraliaBAS & TaxUpdated: Sep 13, 2026
Validation Pending: The capabilities described for Australia are currently under review. Prefiler does not yet offer production-validated automated pre-filing intelligence for this jurisdiction.
Direct Answer
If an Australian company loans money to a director or shareholder, it must be repaid by the tax return lodgment date, or placed under a complying written loan agreement with a benchmark interest rate. Otherwise, it is taxed as an unfranked dividend.
The Div 7A Trap
Many business owners withdraw cash for personal expenses. At year-end, if the "Director Loan" asset account has a debit balance, Division 7A triggers.
Minimum Repayments
If a complying loan agreement (usually 7 years for unsecured) is in place, the director must make minimum annual repayments consisting of principal and interest. These repayments must physically occur via bank transfer before June 30 of the following year, or be offset by a declared company dividend.