The Australian version of the Basel III rules on capital for banks is now final, with only a few minor changes being agreed by the banking regulator regarding prudential standards, which were released on Friday.The new standards, which apply from the beginning of 2013, refashion the definition of core capital, add extra layers of capital and also narrow the type of hybrid securities that banks can use. There is no shift in any of the major areas of policy innovation that have been settled for more than a year now, and which, in any event, conform to all the core principles developed by the Basel Committee for Banking Supervision (a body now managed by an ex-APRA executive).The changes allowed by the Australian Prudential Regulation Authority in the final standards include:-- The use of the law of foreign jurisdictions for select tier-one and tier-two capital instruments. APRA still requires that Australia law applies to the terms of "loss absorption and non-viability requirements."-- The offsetting of new shares sold under dividend reinvestment plans from declared dividends (which are deducted from capital).  -- A change in an accounting standard that affects the eligibility of the Instrument and which means regulatory capital may be considered by APRA to be a regulatory event that would allow a hybrid instrument to be called early. APRA said it will not, however, allow hybrids to be repaid earlier than five years following a change of control event.-- Allowing banks to fund investment in their own shares as part of a normal margin lending business.