Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 4/6)
Character Range: 7305015–7307819

time.
           Step 3. Apply steps 1 and 2 to all such *associate entities of the relevant entity and add all the results that are positive amounts. The result of this step is the associate entity excess amount.
 (3) An *associate entity's premium excess amount at a particular time during that period is the result of applying the method statement in this subsection. In applying the method statement, disregard any amount that is attributable to an entity's *overseas permanent establishments if it is an *outward investing financial entity (non‑ADI) at that time.

      Method statement
           Step 1. Work out the value, as at that particular time, of all the *associate entity equity of the relevant entity that is attributable to the *associate entity (disregarding the value of any *debt interest *issued by the associate entity that is held by the relevant entity at that time).
           Step 2. Work out the value, as at that time, of all the *equity capital of the *associate entity that is attributable to *equity interests that the relevant entity holds in the associate entity at that time (except equity interests whose value is all or a part of the relevant entity's *controlled foreign entity equity at that time).
           Step 3. Reduce the result of step 1 by the result of step 2. However, if the result of step 2 is a negative amount, the result of step 2 is taken to be nil for the purpose of this step.
           Step 4. Multiply the result of step 3 by:

                (a) 15/16 if the *associate entity excess amount is applied for the purpose of working out the *total debt amount of the relevant entity for that period under subsection 820‑100(2), 820‑200(2) or 820‑210(2); or
                (b) 3/5 if the associate entity excess amount is applied for the purpose of working out the *adjusted on‑lent amount of the relevant entity for that period under subsection 820‑100(3), 820‑200(3) or 820‑210(3); or
                (d) the result of step 4 of the method statement in subsection 820‑110(2) if the associate entity excess amount is applied for the purpose of working out the *worldwide gearing debt amount of the relevant entity for that period.

            The result of this step is the premium excess amount.
 (4) The *associate entity's attributable safe harbour excess amount at a particular time during that period is the result of applying the method statement in this subsection. In applying the method statement, disregard any amount that is attributable to an entity's *overseas permanent establishments if it is an *outward investing financial entity (non‑ADI) at that time.

      Method statement
           Step 1. Work out the *safe harbour debt amount of the *associate entity for the day during which that particular time occurs, as if