Income Tax Assessment Act 1936
(a) an owner of an OBU pays an amount of money to the OBU and, because of section 121EC , the amount becomes OBU resident-owner money of the OBU; and
(b) the OBU uses, or holds ready for use, the whole or part of the amount (which whole or part is called the OB use amount ) in carrying on any of its OB activities during the whole or part of any year of income (which whole or part is called the OB use period );
then the assessable income of the owner of the year of income includes deemed interest as described in subsection (2).121EK(2) Amount of deemed interest.
(a) applied to 90% of the OB use amount; and
(b) applied on a daily-rests basis for the OB use period at a rate that is 2% above the 90-day bank bill rate from time to time during that period. 121EK(3) Deduction for deemed interest.
A deduction is allowable from the OBU's assessable income, equal to the amount included in the owner's assessable income, for the year of income. The deduction is taken to be an exclusive OB deduction for interest.