Who are associates for Division 7A purposes?

• There is no special definition of associates for the purposes of Division 7A. The general definition in tax law is used.
• In most cases associates include:

• a relative:
  • parent;
  • grandparent;
  • brother or sister;
  • uncle or aunt;
  • niece or nephew;
  • lineal descendent;
  • spouse including a de facto regardless of their gender;
  • any relative of the spouse; and
  • an adopted child or her or his spouse;
• a partner of the person, the spouse or child of a partner of the person;
• a company that is sufficiently influenced by the person or his associates; and
• a company where more than 50% of voting rights are controlled by the person or his associates.

• This list is not exhaustive. A careful look at the people to whom payments are made by the company is recommended.