Amendments which are contained in Tax Laws Amendment (2010 Measures No 2) Act 2010 mean that from 1 July 2009, Division 7A applies in relation to loans or payments made, or debts that are forgiven, by a closely-held corporate limited partnership to partners or associates of the partner. The ATO has published a factsheet entitled "Division 7A - closely held corporate limited partnerships" explaining the changes.
The ATO has also published a factsheet entitled "Division 7A - trust amounts treated as dividends - payments and loans through interposed entities", which provides information on:
- arrangements where a private company has an unpaid present entitlement to net income from a trust estate and Subdivision EA of Division 7A of Part III of the Income Tax Assessment Act 1936 (Subdivision EA) applies.
- payments and loans made by the trustee to a shareholder or an associate of a shareholder of the company through one or more interposed entities rather than directly to the shareholder or their associate.
- when a private company is taken or deemed to be presently entitled to the net income of a trust estate where one or more trusts are interposed between the private company and the trust estate.