Question 1

Explain why a tax offset is a much more effective way than tax deductions to reduce an overall tax bill

Question 2

Discuss the following comment The source of the funds rather than the use the funds are put to determine whether the interest paid on a loan is tax-deductible. As a result, it is only possible to claim interest deductions on loans from banks as they are in the business of making loans.

Question 3

Explain why the interest paid on a loan to purchase a vacant block of land is not tax-deductible and must be included in the cost base, whereas interest on a loan to purchase a rental is deductible and cannot be included in the cost base.