The Australian Taxation Office (ATO) has issued guidance on the application of the new debt deduction creation rules that apply from 1 July 2024, including in relation to the Division 7A loan rules. --- Debt deduction creation rules and Division 7A How the debt deduction creation rules apply to private businesses and privately owned groups. About the debt deduction creation rules The debt deduction creation rules (DDCR) are contained in Subdivision 820-EAA of the Income Tax Assessment Act 1997 (ITAA 1997). The rules were enacted as part of the government's changes to strengthen the thin capitalisation rules. For more information,...