Protected equity loans fall out of favour in Australia


Protected equity loans in Australia have fallen out of favour with investors as a result of the Australian Tax Office reducing the maximum interest deduction on May 13 this year. The benchmark interest rate in the capital-protected borrowing rules was changed from the Reserve Bank of Australia's indicator variable rate for unsecured personal loans (14.55%) to the standard housing loans rate (9.35%), which means an investor borrowing A$100,000 at 20% can claim a tax deduction of A$9,350 as

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