Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe entity's safe harbour capital amount for the income year is the result of applying the method statement in this section.
Method statement
Step 1. Work out the average value, for the income year, of that part of the * risk - weighted assets of the entity that:
(a) is attributable to the * Australian permanent establishments at or through which it carries on its banking business in Australia; but
(b) is not attributable to the * OB activities of the Australian permanent establishments.
Step 2. Multiply the result of step 1 by 6%. The result of this step is the safe harbour capital amount .
Example: 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.