Private ruling: Tier 1 capital raising
Date of advice: 5 October 2022
Published: December 2022

Ruling: Q1: Will each Security be characterised as a non-share equity interest in the Entity as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997 ? | A1: Yes | Q2: Will Distributions paid by the Entity on the Securities be frankable distributions under section 202-40 of the Income Tax Assessment Act 1997 ? | A2: Yes | Q3: Will section 204-15 of the Income Tax Assessment Act 1997 apply to the Transaction? | A3: No | Q4: Will section 204-30 of the Income Tax Assessment Act 1997 apply to the Transaction? | A4: No | Q5: Will section 177EA of the Income Tax Assessment Act 1936 apply to the Transaction? | A5: No | Q6: Will the Commissioner make a determination under subsection 45C(3) of the Income Tax Assessment Act 1936 in relation to the Transaction, including the payment of Distributions or a Conversion, Redemption or Resale? | A6: No | Q7: Will the Securities be subject to the commercial debt forgiveness provisions in Division 245 of the Income Tax Assessment Act 1997 ? | A7: No | Q8: Will a gain or profit be assessable under section 6-5 of the Income Tax Assessment Act 1997 for the Entity in relation to the issue of Securities or the issue of Ordinary Shares on Conversion, or on Redemption? | A8: No | Q9: Will the issue of Securities or the issue of Ordinary Shares on Conversion or Redemption give rise to CGT event D1 pursuant to section 104-35 of the Income Tax Assessment Act 1997 ? | A9: No | Q10: Will the Entity be required to recognise gains and losses under Division 230 of the Income Tax Assessment Act 1997 in relation to the Securities? | A10: No | Q11: Will the share capital account of the Entity become tainted, within the meaning of Division 197 of the Income Tax Assessment Act 1997 , by an issue of Securities or Ordinary Shares on Conversion, or on Redemption? | A11: No

Relevant facts and circumstances: The Entity applied for a private ruling in respect of the issue of the Securities by the Entity for the purpose of raising Tier 1 Capital.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 45 | Income Tax Assessment Act 1936 section 45B | Income Tax Assessment Act 1936 subsection 45C(3) | Income Tax Assessment Act 1936 section 177EA | Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 Division 197 | Income Tax Assessment Act 1997 section 202-30 | Income Tax Assessment Act 1997 section202-40 | Income Tax Assessment Act 1997 section 202-45 | Income Tax Assessment Act 1997 section 204-15 | Income Tax Assessment Act 1997 section 204-30 | Income Tax Assessment Act 1997 Division 230 | Income Tax Assessment Act 1997 Division 245 | Income Tax Assessment Act 1997 Division 974 | Income Tax Assessment Act 1997 subsection 995-1(1)