Hi AlphaAgree with most of your post except the following:The...

Hi Alpha

Agree with most of your post except the following:

The majority of the loans to MIS investors came from Adelaide Bank. Whilst notionally secured against the MIS asset, they are full recourse loans to the borrower (assets including the home)

The GSL loans made by ANZ et al are secured against GSL's land bank. These lands were secured by registered leases in favour of MIS investors. To "unencumber" the land and disenfranchise the MIS investor, GS conceived the ill fated Project Transform. One can only speculate as to the role of the banks in this gratuitous act of expropriation.

As to your suggestion regarding claiming a tax break, MIS investors have already had a 100% upfront tax deduction, so won't be entitled to have a "second bite at the cherry". Any income from MIS investments will be be taxed at the marginal rate.