• Non-ADI grouping provisions

    Table 3: When the outward investing entity (non-ADI) rules apply to the group

    Group composition

    Classification

    The head company is a non-ADI general outward investor and no member of the group is a financial entity or an ADI.

    Non-ADI outward investor general and Subdivision 820-B applies.

    The head company will be an outward investor if one of its associate entities is an outward investor. This means that if at least one of the head company's subsidiary members is an outward investor, the head company will be an outward investor. Even if the head company or any other company in the group is foreign owned, it will still be classified as an outward investor if it or one of the group's subsidiary members is an outward investor as the outward investor rules take priority over those applying to inward investing entities.

    Refer to subsection 820-583(2) of the ITAA 1997 for more information.

    The head company is a non-ADI outward investor and at least one member of the group (this can be the head company or any other group member) is a financial entity but no member of the group is an ADI.

    Non-ADI financial outward investor and Subdivision 820-B applies.

    The head company will be an outward investor if one of its associate entities is an outward investor. This means that if at least one of the head company's subsidiary members is an outward investor, the head company will be an outward investor. Even if the head company or any other company in the group is foreign owned, it will still be classified as an outward investor if it, or one of the group's subsidiary members is an outward investor as the outward investor rules take priority over those applying to inward investing entities.

    The special rules about on-lent amounts and zero-capital amounts apply to all of the group's assets that satisfy the definitions, whether those assets are held by the actual financial entities in the group or by other entities in the group.

    Refer to subsection 820-583(3) of the ITAA 1997 for more information.

    Table 4: When the inward investing entity (non-ADI) rules apply to the group

    Group composition

    Classification

    The head company is a foreign controlled Australian entity and is not also an outward investor, and no member of the group is a financial entity or an ADI

    Non-ADI general inward investment vehicle and the rules in Subdivision 820-C of the ITAA 1997 apply

    Refer to subsection 820-583(5) of the ITAA 1997 for more information

    The head company is a foreign controlled Australian entity and not also an outward investor, and at least one member of the group, which can be the head company, is a financial entity and no member is an ADI

    Non-ADI financial inward investment vehicle and the rules in Subdivision 820-C of the ITAA 1997 apply

    The special rules about on-lent amounts and zero-capital amounts apply to all of the group's assets that satisfy the definitions, whether those assets are held by the actual financial entities in the group or by other entities in the group.

    Refer to subsection 820-583(6) of the ITAA 1997 for more information.

    Last modified: 09 Mar 2016QC 48181