Use of company assets to be deemed dividends

Division 7A of the Income Tax Assessment Act 1936 deems loans to shareholders to be dividends received by the shareholders unless the loans comply with strict rules concerning interest rates, term, minimum annual repayments and security. On 5 June 2009 the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs announced the release of…

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ASIC releases financial hardship report

ASIC, in conjunction with Consumer Affairs Victoria (CAV), has released a report examining how lenders and mortgage brokers respond to borrowers experiencing financial difficulties. The report, Helping home borrowers in financial hardship (REP 152), found that while some lenders are responding well to the needs of their customers, there is generally room for improvement and…

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New home buyers still borrowing to their limit

There was much joy among residential lenders in January as they celebrated droves of first home buyers returning to the residential property market. First home buyers also appear unafraid of loading up with cheap debt – combining the carrot of the Government grant and lower interest rates to push the average first loan up 7…

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