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How the rules work

The thin capitalisation rules apply differently depending on the type of entity.

Last updated 8 March 2016

The thin capitalisation rules apply differently depending on whether an entity is:

These categories determine how to calculate the maximum allowable debt or, in the case of an ADI entity, the minimum capital amount.

You also need to know what happens under the rules:

How the rules work for ADIs classified under the Banking Act 1959.

How the rules work for non-ADI financial entities.

How the rules work for non-ADI general entities.

How the consolidation rules interact with thin capitalisation.

The rules provide three methods for working out average values.

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