The position of the borrower under an Index Mortgage is established by Product Ruling PR 2020/4, issued by the Australian Taxation Office.  To download a copy of that ruling click here


The tax position of the lender under an Index Mortgage and the associated hedge program is uncontroversial and has been favourably opined upon by KPMG.

Once people understand the (reasonably) simple principle of “you don’t pay tax because you are reducing what you owe, not earning income”, the Index Mortgage was a “no brainer” (to use their words).

Citigate Dewe Rogerson, LaunchSure Report