Back to Basics on Division 7A: Breaking Down the Distributable Surplus

Unpack the meaning of distributable surplus & its impact on Division 7A, including present legal obligations, dividends and more.

In this session, we cover:

• Case study: Lara and Aiden’s Design Business

• Distributable surplus

  • Net assets

  • Present legal obligations

• Apportioning provisional dividends

• Balance sheet implications

• Prior year Division 7A issues

  • Section 109RB discretion

  • Corrective action

• What to do

  • at the end of the income year

  • before the company’s lodgement day

Date recorded: 24 July 2025