Private ruling: Income tax treatment of Arrangement 1 and Arrangement 2
Date of advice: 4 September 2025
Published: 27 October 2025

Ruling: Q1: Does Arrangement 1 constitute debt interests pursuant to Division 974 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. | Q2: Does Arrangement 2 constitute debt interests pursuant to Division 974 of the ITAA 1997? | A2: Yes. | Q3: Are Arrangement 1 and Arrangement 2 separate arrangements for the purposes of Division 230 of the ITAA 1997? | A3: No. | Q4: Do Arrangement 1 and Arrangement 2 together (Financial Arrangement) constitute a financial arrangement pursuant to Division 230 of the ITAA 1997? | A4: Yes. | Q5: If the answer to Question 4 is Yes, are any gains made from the Financial Arrangement assessable to the taxpayer pursuant to subsection 230-15(1) of the ITAA 1997? | A5: Yes. | Q6: If the answer to Question 4 is Yes, are any losses made from the Financial Arrangement deductible to the taxpayer pursuant to subsection 230-15(2) of the ITAA 1997? | A6: Yes. | Q7: If the answer to Question 6 is Yes, does subsection 230-15(5) of the ITAA 1997 apply to cap the deduction? | A7: No.




Subject: Income tax treatment of Arrangement 1 and Arrangement 2: In order to protect the privacy of the taxpayer and commercial in-confidence components of this private binding ruling, the following summary is provided: