Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128ae:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128AE (pt 1/5)
Character Range: 1228447–1231094

128AE  Interpretation provisions relating to offshore banking units
 (1) In this Division, unless the contrary intention appears:
borrow includes raise finance by the issue of a security.
lend includes provide finance by the purchase of a security.
OB activity has the same meaning as in section 121D.
offshore banking unit has the meaning given by this section.
offshore borrowing means:
 (a) a borrowing in any currency, by a person who is or has been an offshore banking unit, from a non‑resident who is not a related person (within the meaning of Division 9A); or
 (b) a borrowing in a currency other than Australian currency, by a person who is or has been an offshore banking unit, from a resident or a related person (within the meaning of Division 9A).
offshore gold borrowing means borrowing gold from an offshore person within the meaning of section 121E.
prevailing borrowing rate, in relation to a person who is or has been an offshore banking unit, in relation to a particular time, means the effective annual interest rate that the Commissioner considers was payable by the person on borrowings at or about that time or, where there were none, by offshore banking units generally at or about that time.
prevailing borrowing term, in relation to a person who is or has been an offshore banking unit, in relation to a particular time, means the period that the Commissioner considers was the usual term of borrowings by the person at or about that time or, where there were none, by offshore banking units generally at or about that time.
security means a bond, debenture, debt interest, bill of exchange, promissory note or other security or similar instrument.
tax exempt gold means gold that is tax exempt gold under this section.
tax exempt loan money means an amount that is tax exempt loan money under this section.
transfer to a person includes apply an amount for the benefit of a person.
 (1A) The Minister must not make a declaration under subsection (2), or a determination under subsection (2AA), after the day on which the Treasury Laws Amendment (2021 Measures No. 2) Act 2021 received the Royal Assent.
 (2) The Minister may, by notifiable instrument, declare a person being:
 (a) a body corporate that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959; or
 (b) a public authority constituted by a law of a State, being a public authority that carries on the business of State banking; or
 (ba) a company in which all of the equity interests are beneficially owned by an offshore banking unit (other than one to which paragraph (c) applies); or
 (c) a person whom the Minister is