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On-lent amount

This is a term used in the adjusted on-lent amount calculation for a financial entity to describe all amounts the entity has lent to other entities. It also includes the value of certain leases and certain securities agreements.

An on-lent amount is relevant to calculating a financial entity's safe harbour debt amount. Generally, on-lent amounts represent the financial entity's on-lending business, which is subject to a concessionary on-lending rule.

A financial entity's on-lent amount is the sum of the following assets:

• the value of debt interests issued to the financial entity by other entities
• the value of leases for the hire of goods that are not debt interests issued by other entities where the
  • leases are for six months or more
  • leases are part of the business of hiring goods carried on by the financial entity, and
  • financial entity's business of hiring goods is not carried on predominantly for the purpose of hiring goods to any of its associates
• the value of securities held by the financial entity that
  • have been sold by the entity under a reciprocal purchase agreement, sell-buyback arrangement or securities loan arrangement, and
  • have not yet been repurchased by the entity under the agreement or arrangement
• if the entity carries on a business of dealing in securities but not predominately for the purposes of dealing in securities with, or on behalf of, the entity's associates, all the shares that
  • the entity holds
  • are listed for quotation in the official list of an approved stock exchange, and
  • are not shares in any of the entity's associate entities.

See also

• subsection 995-1(1) of the ITAA 1997.

Outward investor / outward investing entity

This is an Australian resident entity that:

• is an Australian controller of at least one Australian controlled foreign entity
• carries on business overseas at or through one or more permanent establishments, or
• is an associate entity of either of the above two entities.

An Australian controller is an entity with a 10% control interest in an Australian controlled foreign entity. An example of an outward investor is an Australian company that has a 51% shareholding in a New Zealand company.

See also

• subsection 820-85(2) of the ITAA 1997 for non-ADI entities
• subsection 820-300(2) for ADI entities.