Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/8)
Character Range: 7088804–7091506

period is the period for which the *audited consolidated financial statements for the entity for the income year have been prepared.
 (5) For the purposes of the formula in paragraph (3)(c), if:
 (a) an amount is included in *statement worldwide assets in respect of an asset; and
 (b) the asset was acquired, held or otherwise dealt with by an entity for a purpose (other than an incidental purpose) that included ensuring that subsection (3) does not apply to an entity; and
 (c) as a result of the acquisition, holding or dealing with of the asset, the amount included in statement worldwide assets exceeds the amount (including nil) that would otherwise be so included;
apply the amount of the excess to reduce statement worldwide assets (or statement worldwide assets as reduced by a previous application of this subsection).

820‑100  Safe harbour debt amount—outward investing financial entity (non‑ADI)
 (1) If the entity is an *outward investing financial entity (non‑ADI) for the income year, the safe harbour debt amount is the lesser of the following amounts:
 (a) the *total debt amount (worked out under subsection (2));
 (b) the *adjusted on‑lent amount (worked out under subsection (3)).
However, if the 2 amounts are equal, it is the total debt amount.

Total debt amount
 (2) The total debt amount is the result of applying the method statement in this subsection. In applying the method statement, disregard any amount that is attributable to the entity's *overseas permanent establishments.

      Method statement
           Step 1. Work out the average value, for the income year, of all the assets of the entity.
           Step 1A. Reduce the result of step 1 by the average value, for that year, of all the *excluded equity interests in the entity.
           Step 2. Reduce the result of step 1A by the average value, for that year, of all the *associate entity debt of the entity.
           Step 3. Reduce the result of step 2 by the average value, for that year, of all the *associate entity equity of the entity.
           Step 4. Reduce the result of step 3 by the average value, for that year, of all the *controlled foreign entity debt of the entity.
           Step 5. Reduce the result of step 4 by the average value, for that year, of all the *controlled foreign entity equity of the entity.
           Step 6. Reduce the result of step 5 by the average value, for that year, of all the *non‑debt liabilities of the entity.
           Step 7. Reduce the result of step 6 by the average value, for that year, of the entity's *zero‑capital amount. If the result of this step is a negative amount, it is taken to be nil.
           Step 8. Multiply the result of step