Non-ADI entity
A non-ADI entity is an entity that is not an authorised deposit taking institution for the purposes of the Banking Act 1959.
Non-debt liability
This is a liability that is not a debt interest and meets certain other criteria – see subsection 995-1(1) of the ITAA 1997. The accounting standards are used to determine whether something is a liability.
Non-debt liabilities are relevant to calculating the safe harbour debt amount for non-ADI financial entities. An entity's non-debt liabilities are liabilities at that time other than:
- the entity's debt capital
- equity interests held in the entity
- a provision for a distribution of profit – this is relevant only if the entity is a company, corporate limited partnership, corporate unit trust or a public trading trust
- a provision for a distribution to the entity's members – this is relevant only if the entity is not a company, corporate limited partnership, corporate unit trust or a public trading trust
- liabilities under a securities loan arrangement if, at the relevant time, the entity has received amounts for the sale of securities (other than any fees associated with that sale) but has not yet repurchased the securities
- liabilities that meet the conditions for being included in the entity's borrowed securities amount.
Non-debt liabilities that are wholly or principally of a private or domestic nature are also excluded – see section 820-32. Whether something is a liability is determined by reference to the accounting standards.
For more information, see:
- subsection 995-1(1) of the ITAA 1997
- subsection 820-680(1A) of the ITAA 1997
- Taxation Ruling TR 2002/20.