Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Act 2018 (84 of 2018)

Schedule 2   Other effects of foreign income tax deductions

Part 3   Application

10   Application - regulatory capital

(1) Subitem (2) applies if:

(a) before 9 May 2017, any of the following occurred:

(i) an ADI issued an Additional Tier 1 capital instrument (within the meaning of the prudential standards determined by APRA under section 11AF of the Banking Act 1959 andas in force at the time this Schedule commences);

(ii) a general insurance company issued an Additional Tier 1 capital instrument (within the meaning of the prudential standards determined by APRA under section 32 of the Insurance Act 1973 and as in force at the time this Schedule commences);

(iii) a life insurance company issued an Additional Tier 1 capital instrument (within the meaning of the prudential standards determined by APRA under section 230A of the Life Insurance Act 1995 and as in force at the time this Schedule commences); and

(b) the instrument is callable, and there is a scheduled call date of the instrument on or after 9 May 2017.

(2) Despite subitem 9(1), the amendments made by Part 1 of this Schedule do not apply in relation to a distribution on the instrument if:

(a) at the time the distribution is made, the instrument is an Additional Tier 1 capital instrument within the meaning of the applicable prudential standards as in force at that time; and

(b) the distribution is made on or before the first scheduled call date of the instrument that occurs on or after 9 May 2017.

(3) In determining for the purposes of paragraph (2)(b) whether a call date is the first scheduled call date occurring on or after 9 May 2017, disregard a call date if:

(a) the ADI, general insurance company or life insurance company sought prior written approval from APRA to exercise the call option; and

(b) the prior written approval was not received.