Perhaps, if you were a conspiracy theorist, you might think that they are getting to this end point by stealth.....slowly, slowly so they avoid any outcry from removing neg. gearing in one fell swoop.
Expanding Part IVA Anti Tax Avoidance Provisions
Just to add to the conversation with some more recent of Julia H's musings:
http://bantacs.com.au/newsflash/Newsflash_245_15th-April-2012.pdf
Page 3 headed: Expanding Part IVA Anti Tax Avoidance Provisions
Page 2 of this, headed "Capitalised Interest Ruling Finalised" from Julia H, has some info: http://bantacs.com.au/newsflash/Newsflash_243_15th-March-2012.pdf