Under a scheme, it may be substantially more likely than not that the value of the benefit to be provided will be at least equal to a substantial part, but not the whole of, the value of the financial benefit received under the scheme. In this situation, and subject to certain factors that the legislation requires to be taken into account, the Commissioner has a discretion to treat the interest as a debt interest if:
- all the conditions of the debt test, other than the 'substantially more likely than not' condition, are satisfied, and
- it is substantially more likely than not that:
- other financial benefits will be provided by the issuer, and
- those benefits together with the effectively noncontingent benefits will be at least equal to the financial benefit received under the scheme.