Borrowing Costs


The borrowing cost threshold of $100 has not been changed for years. Back when this figure was set most borrowing costs were under that threshold. It should be raised to $1,000. It is cumbersome to have to keep schedules of borrowing cost amortisation.

Board response

Hi Karl, thanks for the great idea.

The Board has undertaken some background research into this matter and found that the amount has not been amended since 1963.

The Board agrees the thresholds should be reviewed and updated to better reflect the times. Therefore, the Board has raised this matter with Treasury for their consideration.

Thanks again for contributing to Sounding Board.