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Thin capitalisation
  
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The thin capitalisation rules apply to Australian entities investing overseas, their associate entities, foreign controlled Australian entities and foreign entities investing directly into Australia. Under the rules, the amount of debt used to fund those Australian operations or investments is limited. The rules operate to disallow the debt deductions an entity can claim against Australian assessable income when the debt used by the entity to fund its Australian assets exceeds certain limits.
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Guides
Guide A: Guide to thin capitalisation
This guide explains the thin capitalisation rules and which entities they affect, outlines key concepts, and shows how to categorise entities to apply the rules. To be used in conjunction with company, trust or fund income tax return.
Guide B: Guide to thin capitalisation calculations for non-ADI outward investors
Use this guide if the entity you are examining is a non-ADI outward investor (general or financial). It explains how to work out whether the entity is disallowed any debt deductions and, if so, the amount disallowed. NAT 4461B.
Guide C: Guide to thin capitalisation calculations for non-ADI inward investment vehicles
Use this guide if the entity you are examining is a non-ADI inward investment vehicle (general or financial). It explains how to work out whether the entity is disallowed any debt and, if so, the amount disallowed.
Guide D: Guide to thin capitalisation calculations for non-ADI inward investors
Use this guide if the entity you are examining is a non-ADI inward investor (general or financial). It explains how to work out whether the entity is disallowed any debt deductions and, if so, the amount disallowed.
Guide E: Guide to thin capitalisation calculations for ADI entities
Use this guide if the entity you are examining is an ADI entity (outward investor or inward investor).
Guide to thin capitalisation - glossary
The glossary briefly explains the new terms used in the thin capitalisation series of guides. NAT 4461.
Guide A: Guide to thin capitalisation
This guide explains the thin capitalisation rules and which entities they affect, outlines key concepts, and shows how to categorise entities to apply the rules. To be used in conjunction with company, trust or fund income tax return.
Guide B: Guide to thin capitalisation calculations for non-ADI outward investors
Use this guide if the entity you are examining is a non-ADI outward investor (general or financial). It explains how to work out whether the entity is disallowed any debt deductions and, if so, the amount disallowed. NAT 4461B.
Guide C: Guide to thin capitalisation calculations for non-ADI inward investment vehicles
Use this guide if the entity you are examining is a non-ADI inward investment vehicle (general or financial). It explains how to work out whether the entity is disallowed any debt and, if so, the amount disallowed.
Guide D: Guide to thin capitalisation calculations for non-ADI inward investors
Use this guide if the entity you are examining is a non-ADI inward investor (general or financial). It explains how to work out whether the entity is disallowed any debt deductions and, if so, the amount disallowed.
Guide E: Guide to thin capitalisation calculations for ADI entities
Use this guide if the entity you are examining is an ADI entity (outward investor or inward investor).
Guide to thin capitalisation - glossary
The glossary briefly explains the new terms used in the thin capitalisation series of guides. NAT 4461.
Thin capitalisation - what you need to know
This document provides an overview of the thin capitalisation rules including details on why the new rules have been enacted, and which entities are affected.
Thin capitalisation - what you need to know
This document provides an overview of the thin capitalisation rules including details on why the new rules have been enacted, and which entities are affected.
  
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