I was just about to reply when I noticed you beat me to it
Steeles case was what I was going to mention the interest was allowed as a deduction because although the land held produce no income there was clear intention to develope the land and the owner of the land was actively involved in trying to obtain planning approvals and further investors to acheive this.
If land was purchased with a so called intention to build an income producing property but nothing was done for 7 years and the property then sold, the interest would not be deductible.
But sorry Ultra I am Perth based maybe George can help you
