Hi Karll, Interesting story but the facts can be quite simply...

Hi Karll,

Interesting story but the facts can be quite simply stated as the EJA feels the rate of interest for a 35 year loan is too high at 10.25 and has asked ATO to determination is correct. Jemena has said they checked with the ATO before they refinanced.

Its a he said, she said, at this time and the ATO may not even investigate the interest rate because they may have already agreed to it, as Jemena has stated.

I just looked up the thirty year US bond rate and it is about 2.5% (http://data.cnbc.com/quotes/US30Y). With our currency risk and being a commercial loan and not a Government backed bond is 10.25% too much for a loan to Jemena? May be someone else could answer this question but in my uneducated estimation it doesn't seem too far out of the ball park.

Seems like a press blowup to me.

DYOR

Cheers

Stoops