Income tax: deductibility of interest incurred on borrowings under the Suncorp Protected Loan

Product Ruling PR 2006/126 sets out the Commissioner's view on the deductibility of interest for entities participating in the Suncorp Protected Loan.

From 1 July 2007, the recently enacted Division 247 of the Income Tax Assessment Act 1997 applies a different methodology for calculating the cost of capital protection for entities in the Suncorp Protected Loan. PR 2006/126 therefore has no application to entities entering into the Suncorp Protected Loan on or after 1 July 2007.