Nigel has a good year and makes a $200k profit from his construction business which he operates through a discretionary trust. The trust makes a resolution prior to 30th June to distribute all the profits to Nigel Bucket Co Pty Ltd so he can enjoy a tax rate of 27.5% Nigel thinks he is extra smart as he draws those funds out of the trust and puts it into his home loan offset account where the interest isn't tax deductible. Nigel isn't concerned as he was told that this "Division 7a thingy" only affects companies. "I'm smart...i used my trust instead" The accounts show the amount as an Unpaid Present Entitlement (a "UPE"). Nigel finds out during an audit that he wasn't so smart after all. Check your accounts. Do a tax risk review.