Short Term Solutions For Division 7A

One of the short term solutions is, a lot of clients put their excess cash in their offset account to reduce the interest on their home loan. They repay the loan before 30 June, and that is a repayment of the Division 7A loan. But technically, if you rip it back out on the 1st of July, the ATO’s have the ability to look through it. We don’t want to be blatant about putting it in, ticking 30 June and then taking it out again. We do need a better medium to long term solution than the short term solutions. This is not our only trick, so to speak. But this is kind of no way to manage it long term.

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