The ATO on Wed 4.12.2013, released Product Ruling PR 2013/22 (Tax consequences for a borrower under a mortgage reduction program managed by Allstate Home Loans). It applies to entities that enter into the scheme from Wed 4.12.2013 until 30 June 2016. Broadly, the Ruling states that provided the scheme is carried out as described, the anti-avoidance provisions will not apply to deny the borrower of a deduction allowed under s 8-1 of the ITAA 1997.

[LTN 235, 4/12/13]

About the author