Thanks Terry, yes I read that ruling. I liked the 2001 info as it specifically mentioned other cost like the rates. It also mentioned that if you use it as guidance you may be challenged to repay but not be penalised. I think with the tax ruling and the other 01 info Im fairly safe.
The tax guy
i spoke to had agreed with claiming the interest but said there were no other expenses allowable prior to the property being available for rent. That is the part i had an issue with, as I want to claim rates, insurance etc for the whole financial year and not only 45 days worth.

cheers

Grant