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Which of the Following Is not Part of the Proposed

Question 17

Multiple Choice

Which of the following is not part of the proposed changes to Division 7A that were originally announced in the 2016/17 Commonwealth Budget?


A) The benchmark interest rate that will be applied to Division 7A loans will be changed to the Reserve Bank of Australia's Small Business Variable Overdraft rate, which is currently 7.74 per cent (compared to the current rate of 5.37%)
B) There will be no requirement for a formal written loan agreement,
C) There will be one '10-year loan model' for all loans made by private companies.
D) All existing loans, entered into before these new measures take effect, will be extinguished

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