Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128a:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128A (pt 1/4)
Character Range: 1208848–1211491

128A  Interpretation
 (1) In this Division, unless the contrary intention appears:
ADI means a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.
dividend:
 (a) includes part of a dividend; and
 (b) (except when used in paragraph (d) of the definition of interest in subsection (1AB)) does not include a dividend paid in respect of a non‑equity share.
enterprise means a business or other industrial or commercial undertaking.
entity means:
 (a) the Commonwealth, a State or an authority of the Commonwealth or of a State;
 (b) a natural person;
 (c) a company;
 (d) the partners in a partnership, in their capacity as partners;
 (e) the persons carrying on a joint venture, in their capacity as such persons; or
 (f) the trustees of a trust, in their capacity as such trustees.
foreign bank means a non‑resident company that carries on a banking business.
joint venture means an enterprise carried on by 2 or more persons in common otherwise than as partners.
non‑ADI financial institution means a corporation that:
 (a) is a registered entity within the meaning of the Financial Sector (Collection of Data) Act 2001; and
 (b) is included in Category D (Money Market Corporation) in a list kept under section 11 of that Act; and
 (c) carries on a general business of providing finance (within the meaning of that Act) on a commercial basis.
nostro account means an account that:
 (a) an ADI or non‑ADI financial institution holds with a foreign bank and maintains for the sole purpose of settling international transactions; and
 (b) operates on the basis that:
 (i) amounts deposited in the account are held in the account for no more than 10 days; and
 (ii) amounts advanced by way of an overdraft on the account are repaid within 10 days.
 (1AA) In this Division and in an Act imposing withholding tax:
income includes a royalty and a dividend.
 (1AB) For the purposes of this Division:
interest includes an amount:
 (a) that is in the nature of interest; or
 (b) to the extent that it could reasonably be regarded as having been converted into a form that is in substitution for interest; or
 (c) to the extent that it could reasonably be regarded as having been received in exchange for interest in connection with a washing arrangement; or
 (d) that is a dividend paid in respect of a non‑equity share; or
 (e) if regulations under the Income Tax Assessment Act 1997 are made having the effect that instruments known as upper tier 2 capital instruments, or a class of instruments of that kind, are debt interests—that is paid on such a debt interest and is not a return of an