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Private Company Loans Perth

Creating legally compliant private company loan strategies for businesses in Perth to capitalise on tax opportunities.

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Applying Division 7a for Perth Businesses

Private company loans allow private/family businesses to access additional funds from the company without applying tax. Under the Division 7a tax rule, a private company loan allows owners and shareholders of a private company to borrow funds from the business and repay the amount over a period of time with interest. The borrowed amount is not subject to tax, making private company loans a practical part of the business tax strategy. 


The Division 7a tax rule, and consequently the application of private company loans, has undergone significant revisions since 1997. The ATO has made multiple overlapping rulings for  Division 7a, which complicates the process of taking out a private company loan lawfully. 


MKM Accountants have the right expertise to help Perth family businesses access private company loans for greater financial flexibility in full compliance with Division 7a. We review the current financial strategy of family businesses and develop a tailored private company loan solution.

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Compliance Requirements for Private Company Loans

In order for a private company loan to stay compliant with Division 7a, it must:


  • Be fully repaid within the required timeframe
  • Ensure that repayments for an asset or service are made at the corresponding market value
  • Have a loan agreement that has been placed in writing and meets the requirements of Division 7a


The written loan agreement must clearly set out the conditions of the loan, including the amount borrowed, the loan term, the names of the lender and borrower, and the interest payable. The interest payable must meet the minimum rate set by the ATO, which is 8.77% as of 7 June 2024. 

Our Accreditations & Awards

Certified Chartered Accountants

Tax Practitioners Board Registered

Certified Chartered Accountants

We are chartered accountants recognised through our membership to Chartered Accountants Australia and New Zealand (CA ANZ). As registered Chartered Accountants, we are “Difference Makers” with a complete range of skills and expertise that goes beyond basic accounting certification.

Xero Bronze Partner

Tax Practitioners Board Registered

Certified Chartered Accountants

Our work across multiple accounts has afforded us Xero Bronze Partner status, which entitles us to all of the software and support given to Xero partners. Our Xero Bronze Partner status provides our clients with enhanced support and access on the accounts that we manage. 

Xero Certified Advisor

Tax Practitioners Board Registered

Tax Practitioners Board Registered

Our Xero Certified Advisor status means that we are certified to provide accounting and bookkeeping services on the Xero platform for our clients. Gaining and maintaining certification reflects our expertise on the Xero platform and ensures we deliver the best service to our clientele.

Tax Practitioners Board Registered

Tax Practitioners Board Registered

Tax Practitioners Board Registered

We are Tax Practitioners Board Registered. This certification shows that MKM Accountants are members of the independent regulatory board in Australia that is responsible for registering and regulating all tax agents and Business Activity Statement (BAS) agents. 

Contact Us

Phone Number: (08) 8911 0969

Email: admin@mkmaccountants.com.au

Where We Service:

Perth, Western Australia, Australia

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Other Individual Accounting Services

→ Capital Gains Tax


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Latest Blog Posts

Analyzing Division 7A and TA 2024/2

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The ATO have recently released Taxpayer Alert 2024/2. The ATO are concerned with taxpayers who attempt to circumvent the operation of Division 7A by the use of an interposed entity and guarantees.

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Tax Requirements of a Working Holiday Maker

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The Working Holiday Maker visa program has been around since 1975 and allows foreigners to work or study temporarily in Australia, under a 417 visa (Working holiday visa), or a 462 visa (Work and holiday visa). 

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As of June 2023, there are 594,334 Self-Managed Superannuation Funds. These vehicles are popular as more people want control over where their future or current retirement funds are invested. 

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