Income Tax Assessment Act 1997
The entity ' s safe harbour capital amount for the income year is the result of applying the method statement in this section. Method statement
Work out the average value, for the income year, of that part of the *risk-weighted assets of the entity that:
Multiply the result of step 1 by 6%. The result of this step is the safe harbour capital amount .
The Global Bank is a foreign bank that carries on its banking business in Australia through a permanent establishment. The average value of its relevant risk-weighted assets is $140 million. Multiplying that amount by 6% results in $8.4 million, which is the safe harbour capital amount.