(1) Despite subsection 294-10(2), a transfer balance credit arises under item 4 of the table in subsection 294-25(1) of the Income Tax Assessment Act 1997 only in relation to a borrowing that arises under a contract entered into on or after 1 July 2017.
(2) For the purposes of subsection (1), a borrowing (the new borrowing ) that arises under a contract entered into on or after 1 July 2017 is treated as if it arose under a contract entered into before 1 July 2017 if:
(a) the new borrowing is a refinancing of a borrowing (the old borrowing ) that was made under a contract:
(i) entered into before 1 July 2017; and
(ii) covered by the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993 (which is about limited recourse borrowing arrangements); and
(b) the new borrowing is secured by the same asset or assets as the old borrowing; and
(c) the amount of the new borrowing at the time it is first made equals, or is less than, the outstanding balance on the old borrowing just before the refinancing.