The thin capitalisation rules apply differently depending on whether an entity is:
- an authorised deposit-taking institution (ADI).
- a general entity or a financial entity
- a non-ADI general entity.
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:The thin capitalisation rules apply differently depending on the type of entity.