What George and I stated last night and the reply you received from the "tax website" are all saying the same thing.
There DOES NOT have to be a dividend plan in place for the interest to be duductible - But there DOES have to be the INTENTION to receive income (dividends).
It appears you want a definitive answer but unfortunately one can not be given in this situation. A clear definition of intention is not given any where in the tax act.
If you want certainty that the interest deduction will not be knocked out at some time in the future, as an investor only claim interest on borrowed funds used to buy dividend paying shares. Alternatively borrow for example $30,000 to buy a portfolio of dividend paying and shares likely to pay dividends.
If though all or the majority of shares you buy or not dividend paying you should at least obtain as much research material as you can prior to buying to support your claim that the intention of the purchase was income producing. If you do claim interest deductions for a number of years but show no income against the deductions you will be increasing the chances of the ATO asking for a please explain.
