According to 109N of Income Tax Assessment Act 1936 (ITAA 1936), if certain criteria are met, the company will not be deemed to have paid a dividend to the individual receiving the 'loan' or 'payment'. 

These conditions include:

1.    The loan agreement was made in writing;

2.    The rate of interest rate equals or exceeds the bench mark interest rate;

3.    The term of the loan does not exceed the term as follows:

• -   25 years provided the loan is secured by a mortgage over real property;
• -   7 years for any other loan.

4.    The loan agreement must be in place before lodgement day of the income tax return.