Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:13_3:p8
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 13 cl 3 (pt 8/9)
Character Range: 217696–220512

for that day for the single company; and
 (c) for each *Australian permanent establishment covered by the choice—the *equity capital of the foreign bank, as at the end of that day, that:
 (i) is attributable to that Australian permanent establishment; but
 (ii) has not been allocated to the *OB activities of the foreign bank;
  plus the total of the amounts that, as at the end of that day:
 (iii) are made available by the foreign bank to the Australian permanent establishment as loans to the Australian permanent establishment; and
 (iv) do not give rise to any *debt deductions of the foreign bank for the income year or any other income year.

Note: The amounts are to be worked out, so far as practicable, on the basis of the information that would be contained in a set of consolidated accounts. See section 820‑611.

Risk‑weighted assets

 (4) For each *Australian permanent establishment that is treated covered by the choice, the *risk‑weighted assets of the *head company or single company include that part of the foreign bank's *risk‑weighted assets that:
 (a) is attributable to that Australian permanent establishment; but
 (b) is not attributable to the *OB activities of the foreign bank.

820‑615  How Subdivision 820‑E applies if head company or single company is treated as including foreign bank branches

 (1) This section has effect for the purposes of applying Subdivision 820‑E to the *head company or single company in relation to a period (the test period) that is all or part of the grouping period.

Note: Subdivision 820‑E applies to the head company or single company because of subsection 820‑609(3).

Average equity capital

 (2) The average equity capital of the *head company or single company for the test period is the average value, for that period, of the amount worked out under subsection 820‑613(3).

Note 1: In the case of a choice under section 820‑599, paragraph 820‑603(4)(b) treats the single company and the relevant Australian permanent establishments as a consolidated group.

Note 2: To calculate an average value for the purposes of this Division, see Subdivision 820‑G.

Safe harbour capital amount

 (3) The safe harbour capital amount of the *head company or single company for the test period is worked out using the following method statement.

      Method statement
           Step 1. Work out the average value, for the test period, of the *head company's or single company's *risk‑weighted assets.
           Step 2. Multiply the result of step 1 by 4%. The result of this step is the safe harbour capital amount.

Risk‑weighted assets

 (4) For each *Australian permanent establishment covered by the choice, the *risk‑weighted assets of the *head company or single company include that part of the *risk‑weighted assets of the *foreign bank that: