Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/32)
Character Range: 7209581–7212051

at least one *member of the *consolidated group or *MEC group is an *ADI; and
 (b) each ADI that is a member of the group at any time in the period is a *specialist credit card institution at that time; and
 (c) the *head company of the group for the period chooses, before lodging its *income tax return for the income year, that this Division should have effect in that way in relation to the group and every period for which the conditions in paragraphs (a) and (b) are met in the income year.
 (3) An *ADI is a specialist credit card institution at a time if, at that time, the ADI's authority under section 9 of the Banking Act 1959 to carry on banking business (as defined in that Act) authorises the ADI to carry on only banking business that:
 (a) is participation in a payment system (as defined in the Payment Systems (Regulation) Act 1998) that is a credit card scheme and is designated under section 11 of that Act; and
 (b) is either or both of the following:
 (i) credit card acquiring (as defined in regulations made for the purposes of the Banking Act 1959);
 (ii) credit card issuing (as defined in those regulations).
 (4) To avoid doubt, a choice for the purposes of paragraph (2)(c) cannot be revoked.

820‑589  How Subdivision 820‑D applies to a MEC group
 (1) This section has effect for the purposes of working out the *adjusted average equity capital of the *head company of a *MEC group for a period (the test period) that is all or part of an income year if Subdivision 820‑D applies to the head company in relation to that period.
Note: Section 820‑587 extends the application of Subdivision 820‑D.
 (2) The *head company's *ADI equity capital at a particular time during the test period is to be worked out:
 (a) taking into account an *equity interest or *debt interest in the head company only if it is held at that time by an entity that is not a member of the group; and
 (b) on the basis that an equity interest or debt interest in an *eligible tier‑1 company (other than the head company) that is a member of the group at that time is treated as an equity interest or debt interest (as appropriate) in the head company, but only if it is held at that time by an entity that is not a member of the group; and
 (c) on the basis of the information that would be contained in a set of consolidated accounts:
 (i) prepared, in accordance with the *accounting standard on consolidated accounts, as at that time; and
 (ii) covering the members