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Reply: 1.1.1.1.1.1.1.2.1.1.1 From: Richard Hunt Waverly, I’m always interested in alternative views. I acknowledge concept of “form vs substance” and its potential application across a wide variety of transactions, particularly those transactions to which to refer, where ATO suspicions are...

Reply: 1.1.1.1.1.1.1.2.1 From: Richard Hunt Hi Waverly, On your first point - Try not to rely too heavily on logic and common sense to anticipate the tax treatment of the LMI premium. I'd think we'd all agree with you that, using your words, "...the LMI costs relate to the combined loan"...

Reply: 1.1.1.1.1.1.1 From: Richard Hunt Rolf, No problems with the logic driving your proposed structure but I would still be reluctant about claiming the full amt of LMI as a borrowing expense. The problem you have is that the law requires you to apportion the total LMI premium “incurred”...

Reply: 1.1 From: Richard Hunt Rolf, I'll stand with the conservatives! The LMI premium is incurred as a direct result of the money borrowed for the PPOR. As a borrowing expense is only deductible to the extent that the borrowed money (to which the expense relates) is used to produce...