A friend’s accountant suggested that they could reduce interest on non-deductible debt by using company cash to offset their personal
mortgage, then transferring the cash back by 30 June. Is this an acceptable strategy?
This might initially sound like a brilliant strategy but what is really happening is that you are using company funds to derive a personal
benefit. Doing this once might not attract attention, but doing this more than once might trigger a deemed unfranked dividend under Division
7A. Section 109R is designed for scenarios like this.
If this occurs, the repayment you made will be ignored, meaning that a deemed dividend could be triggered in relation to the funds
initially borrowed from the company unless a complying loan agreement is put in place, in which case minimum loan repayments would need
to be made to prevent a deemed dividend from arising.
For example, let's assume you are a shareholder of the company (or an associate of a shareholder) and you borrow money from the company on 1
July 2022. This loan would generally fall within the scope of Division 7A, but a deemed dividend can be avoided if the loan is fully repaid
by the earlier of the due date and actual lodgement date of the company's 2023 tax return.
However, if you repay the loan but it appears that you intend to borrow a similar or larger amount from the company when making the
repayment then the repayment can be ignored. The main exception to this is where the repayment is made in a way that is taxable to the
individual (e.g., dividends or directors’ fees are set-off against the loan balance).
One of the most common situations where section 109R could apply is where funds are taken from the company bank account and placed into a
director's home loan offset account.
Even if the funds are transferred back to the company before the end of the year, there is a significant risk of section 109R applying if the pattern repeats. That is, the money will be treated as a dividend and taxed as assessable income.
Give us a call or email if you'd like help to understand what this means for you and your business.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Friday 31 August, 4:00pm-6:00pm
Join our practical,
educational workshop designed to help business owners understand the lending process and in preparation for funding conversations, learn how lending decisions are really made and what banks actually look for.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Tuesday 25 August, 10:00am-12:00pm
This practical, confidence-building session is designed to give business owners control. Know Your Numbers is a hands-on workshop created specifically for non-financial business owners who want clarity and confidence in their decision-making.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Monday 24 August, 5:30-7:30pm
This practical, education-first session helps business owners cut through the confusion and take back control of their business insurance
decisions.
MP SHIRE SMALL BUSINESS FESTIVAL / LIVE WORKSHOP
Monday 10 August, 5:30-7:30pm
This practical session, in collaboration with the Mornington Peninsula Shire as part of the Small Business Festival, helps small business
owners understand AI and automation and shows how small businesses can use smarter tools to reduce manual work, improve accuracy and
create more capacity for growth.
Conference // 5 August, 2026 - ALL DAY EVENT
The B.I.T.E. Business Conference 2026 is the Mornington Peninsula’s premier event for bold business owners ready to rethink what’s
possible, reinvent how they operate, and reignite their growth. Hear from global keynote speakers including Grant Hackett, Andrew Griffiths
and Kate Christie plus local business innovators.
AI-Enhanced Automation for Accounting and Finance Professionals: Leveraging ChatGPT, Copilot & Claude for Innovation and
Productivity.
Join SkyBots’ 2-day Workshop in MELBOURNE with automation expert Daryl Aw to revolutionise your workflow using cutting-edge
Agentic AI tools including Chat GPT, Claude, CoPilot and Gemini. This workshop is built for accountants,
bookkeepers, finance teams, and business owners who want to move beyond basic prompts and turn AI into a reliable, ethical, and practical
system for everyday work.
AI-Enhanced Automation for Accounting and Finance Professionals: Leveraging ChatGPT, Copilot & Claude for Innovation and
Productivity.
Join SkyBots’ 2-day Workshop in BRISBANE with automation expert Daryl Aw to revolutionise your workflow using cutting-edge Agentic
AI tools including Chat GPT, Claude, CoPilot and Gemini. This workshop is built for accountants, bookkeepers, finance teams,
and business owners who want to move beyond basic prompts and turn AI into a reliable, ethical, and practical system for everyday work.
A caravan loan can make the upfront cost manageable, but it’s the ongoing expenses that can catch first-time owners off guard.
Fixing your rate can offer certainty, but it also involves trade-offs that are worth understanding before making a decision.
Lenders calculate how much you can borrow based on your income, existing debts, living expenses and other financial commitments.
Business Growth brings its own financial pressures, and cash flow is often where those pressures first show up. It’s a pattern that catches many business owners off guard.
| The Fair Work Commission (FWC) has handed down its 2026 Annual Wage Review, and the numbers are in. From 1 July 2026, the national minimum wage will rise by 5.97%, and modern award minimum rates will increase by 4.75%. |
The luxury residential sector is experiencing uneven performance across Australia's major cities.
WEBINAR // 28 May, 2026 - 12:30 - 1:15pm
From 1 July 2026, Australian employers must pay super on payday - not quarterly. Join us on Wednesday 28 May for a practical 45-minute briefing on what Payday Super actually requires, where the risks are for small businesses, and the steps you can take right now.
Can’t make it live? Register anyway - all registrations will receive access to the recording to your inbox.
Rental performance is increasingly fragmented across the country.
Consumer habits have shifted markedly, with daily convenience trips now replacing the traditional big-shop model, turning neighbourhood and convenience centres.
Australian farmland prices are expected to continue their modest growth trajectory in 2026, with the median price per hectare forecast to increase by two per cent.
Lunch & Learn Workshop // 22 May, 2026 - 12:00 - 1:30pm
$35pp includes lunch
This session is designed to change that. Pricing, Profit &
Your Ideal Client
is a practical workshop that helps you understand where your
profit really comes from,
how pricing decisions affect margins, and why working with clients that align with your business makes a measurable difference to both
profit and cashflow.
Buy now, pay later can be cost-effective if you pay on time.
Institutional capital is flowing back into Australian commercial property as market fundamentals strengthen, with experienced investors moving ahead of broader market confidence.
Now's the time to review what strategies you can use to minimise your tax before 30 June.
Making strategic investments in new assets before EOFY can position your business for growth in the year ahead.
The Federal Budget, delivered on the night of May 12 2026, was one of the most significant in years. We know you will have questions — and we have put together this document to answer the ones we are hearing most.
The 2026–27 Federal Budget brings major changes to CGT, negative gearing, trusts and super. Find out what it means for you and your business.
This established production business was growing. A diverse team crossing over from admin, trades and operations. The team were all getting on with it, but with no real structure in place, the cracks were starting to show.
Like a lot of growing businesses, revenue looked strong on paper, but timing was the issue. Jobs didn’t always start when expected, expenses were creeping up, and there was no clear visibility on when cash would be coming in versus going out.
This client was a solid, established manufacturing business selling both wholesale and direct to retail customers. They knew their numbers mattered, but their engagement and active management was inconsistent and the lack of rhythm and accountability, impacted their bottom line and decision making.
The ATO has released Draft Practical Compliance Guideline PCG 2026/D2, and it’s very clear where they’re focusing next, property development structures, particularly where land ownership and development activities are split.
New equipment is essential to growth. Whether it’s machinery, vehicles, or specialised technology, the right assets could improve efficiency, increase production, and help secure larger contracts.
What if time wasn’t your biggest constraint – but your biggest opportunity? In this episode of The Accountant That Builds Podcast, we are joined by Kate Christie, internationally recognised time management expert, keynote speaker, and bestselling author. Kate has spent more than two decades helping business owners, leaders and teams take control of their time, energy and priorities.
What does it really take to stop discounting yourself and start charging what you’re truly worth? In this episode of the The Accountant That Builds Podcast, host Shannon Smit sits down with Andrew Griffiths, Australia’s #1 small business author and one of the most respected voices in business and personal growth.
Cash flow is the lifeblood of any business. Even when sales are strong and invoices are being issued regularly, delayed payments could create bottlenecks that make it difficult to cover everyday expenses.
Brisbane and Perth recorded the most affordable office fit-out costs in the country at an average of $934 per square metre.
Industrial property delivered total returns of 8.6 per cent in December 2025, with capital growth of 4.1 per cent, the strongest of any major asset class.
Commercial property markets have returned to positive capital growth after two years of adjustment.
Before applying for a caravan loan, it’s important to understand what you could comfortably afford.
Tax planning is more than just a financial necessity—it's a strategic advantage for businesses of all sizes. By proactively managing your tax strategy, you can significantly reduce your liabilities, enhance cash flow, and ensure full compliance with ever-evolving tax regulations.
A sudden repair bill could feel overwhelming, especially if it arrives at the wrong time financially.
An open home provides a valuable opportunity to observe not just the property itself, but also the surrounding area.
Managing your personal expenses in the face of the rising cost of living. We run through a live demo of our detailed 12-month personal budget worksheet so you know how you can effectively use this tool yourself.
Many first home buyers focus primarily on the purchase price of a property and the size of their loan repayments.
Prestige apartments have been the strongest market segment in the last few years.
National weekly house rents have reached $650 and unit rents $625, with annual growth running at 4.8 per cent for houses and 4.2 per cent for units.
In this episode of The Accountant That Builds, Shannon Smit explores what financial literacy really means and why it matters so much for everyday Australians. She breaks the concept down in practical, real life terms and explains why so many capable, intelligent people still feel confused, overwhelmed, or behind when it comes to money.
To maximise your deductions and ensure that your tax return is complete, please review the following items and advise your Accountant if any apply to you.
Understand what expenses you can claim as a property investor.
Everyone wants to pay less tax, right? To do that you need to know what you can claim… and what you can’t.
Now's the time to review what strategies you can use to minimise your tax before 30 June.
| The Fair Work Commission (FWC) has handed down its 2026 Annual Wage Review, and the numbers are in. From 1 July 2026, the national minimum wage will rise by 5.97%, and modern award minimum rates will increase by 4.75%. |
Now's the time to review what strategies you can use to minimise your tax before 30 June.
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