Extensions and other changes
247-85 Extensions and other changes
This section applies to a capital protected borrowing entered into at or before the 2008 Budget time (including one covered by Subdivision 247‑A or section 247‑75) where, after that time, one or both of these events occurred:
the term of the capital protected borrowing is extended;
some other change is made to the terms and conditions of the capital protected borrowing.
Work out the amount that is reasonably attributable to the capital protection using the method statement in subsection 247‑75(1) and, for step 2 in that method statement, using the rate applicable under either or both of subsections (3) and (4) from the earlier of these times:
the time the extension or change took effect;
the start of 1 July 2013;
(the switch‑over time).
If:
the capital protected borrowing is at a fixed rate for all or part of the term of the capital protected borrowing; and
that fixed rate is applicable to the capital protected borrowing for all or part of the income year that is at or after the switch‑over time;
use the adjusted loan rate (as described in subsection 247‑80(4)) applicable at the first time an amount covered by step 1 of that method statement was incurred, in any income year, while the capital protected borrowing is at that fixed rate.
If:
the capital protected borrowing is at a variable rate for all or part of the term of the capital protected borrowing; and
a variable rate is applicable to the capital protected borrowing for all or part of the income year that is at or after the switch‑over time;
use the average of the adjusted loan rates (as described in subsection 247‑80(4)) applicable during those parts of the income year when the capital protected borrowing is at a variable rate.
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