Document ID: chunk:federal_register_of_legislation:C2011A00061:clause:2_12:p2
Version: federal_register_of_legislation:C2011A00061
Segment Type: clause
Provision Reference: sch 2 cl 12 (pt 2/3)
Character Range: 11589–14177

the capital protected borrowing is at a variable rate.

247‑80  Capital protected borrowings in existence on 1 July 2013
 (1) This section applies to a capital protected borrowing (including one covered by Subdivision 247‑A or section 247‑75):
 (a) entered into at or before the 2008 Budget time; and
 (b) in existence on 1 July 2013; and
 (c) to which section 247‑85 does not apply.
 (2) 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 (5) on or after 1 July 2013.
 (3) If:
 (a) the capital protected borrowing is at a fixed rate for all or part of the term of the capital protected borrowing; and
 (b) that fixed rate is applicable to the capital protected borrowing for all or part of the income year that is on or after 1 July 2013;
use the rate worked out under subsection (4) 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.
 (4) The rate (the adjusted loan rate), at a particular time, is the sum of:
 (a) the Reserve Bank of Australia's Indicator Lending Rate for Standard Variable Housing Loans at that time; and
 (b) 100 basis points.
 (5) If:
 (a) the capital protected borrowing is at a variable rate for all or part of the term of the capital protected borrowing; and
 (b) a variable rate is applicable to the capital protected borrowing for all or part of the income year that is on or after 1 July 2013;
use the average of the adjusted loan rates applicable during those parts of the income year when the capital protected borrowing is at a variable rate.

247‑85  Extensions and other changes
 (1) 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:
 (a) the term of the capital protected borrowing is extended;
 (b) some other change is made to the terms and conditions of the capital protected borrowing.
 (2) 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:
 (a) the time the extension or change took effect;
 (b) the start of 1 July 2013;
(the switch‑over