Back to Basics on Division 7A: Breaking Down the Distributable Surplus
By Nicole Rowan
1h 9m CPD time
Difficulty: Basic
You’re in the right place. New look, same Tax Nuggets.
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