Advice under development: Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18
Issue: Loans for Division 7A purposes
Category: Income tax
Type of advice: Decision impact statement
Status: Under development
Purpose: This Decision impact statement provides taxpayers and advisers with guidance to inform their decisions about trust distributions and the operation of Division 7A of the Income Tax Assessment Act 1936 before the end of the 2025–26 financial year. | It explains that the effect of the High Court's decision is that no loan will arise for the purposes of Division 7A where a private company beneficiary does nothing in respect of its entitlement to income from a trust. However, any dealing with those funds that amounts to either a payment or loan to, or forgiveness of a debt of, a shareholder of that corporate beneficiary or their associate, may attract the operation of the rules on unpaid present entitlements in Subdivision EA. | Further, if the entitlement arose from a reimbursement agreement, the integrity measure in section 100A of the Income Tax Assessment Act 1936 may apply to tax the trustee at the top marginal rate.
Comments: The Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18 published on 26 June 2026. Comments period closed on 24 July 2026.
Referenced documents: Decision impact statement