Understanding thin capitalisation

What the thin capitalisation rules are and who they apply to.

How thin capitalisation rules apply to different entities and the 3 tests that apply to general class investors.

Find out how to categorise an entity and which thin capitalisation rules apply.

The head of a tax group can be either an outward or inward investing financial entity, ADI or a general class investor.

You must calculate average values for particular matters like assets, liabilities, debt and equity capital.

Some financial entities (non-ADI) can elect to apply the ADI thin capitalisation rules.

Some specialist credit card institutions can elect to be treated as financial entities (non-ADI).

How thin capitalisation rules apply to a financial entity (non-ADI) subject to the rules for part of an income year.