Post-Implementation Review of Division 7A of Part III of the Income Tax Assessment Act 1936

Division 7A – 2nd Discussion Paper March 2014

This is a brilliantly argued discussion paper. It understands SME structures and financing and finds an answer that supports these structures. A job very well done!
Would you consider modifying the proposed single 10 year repayment plan (rather than 7 or 25 years is secured over real property) with payments not required every year, but rules like 25% repaid by year 3, 50% by year 5...
As SMEs like certainty with discretion where times are hard I think many SMEs would prefer a straight line ten year repayment with the ability to miss two year’s payment that are made up over the following two years. Or something similar.
But well done!

Ken Mansell
0429 566 516
taxrambling.com
ken@taxrambling.com