Capitalising split loan

my first post,
I am one of your many followers, I would like to ask for some advice.

I, had contact with “ Austral Mortage Corp “ The following is the last e-mail I received

Best wishes for 2004. Let’s make this Wealth Optimiser’s year.

As you are probably aware the High Court heard, on Friday 7th November
2003, the ATO’s appeal against the Part IVA issue, relating to the Full
Federal Court’s unanimous decision in the Wealth Optimiser test case, Hart
v Commissioner of Taxation [2002] FCAFC 222. This was the final step in our
long journey to win the right for private investors to claim capitalised
interest in a split loan structure. The High Court having heard the appeal
reserved its judgment.

If the High Court does not uphold the ATO’s appeal we will have won the day
and finally proved that our capitalising split loan, Wealth Optimiser, is
not in breach of the Income Tax Assessment Act.

That will be great news for Mum and Dad investors who have a home and
investment loan. They can legally maximise their negative gearing benefits
by paying off their home loan quickly whilst capitalising interest on their
investment loan.

Allowing for the complexity of the issue, and the fact that the High Court
rose for the holiday recess until end January, we anticipate that the
judgment will be handed down March/April 2004. Judgment day is drawing
nearer. The High Court will only give us 48 hours notice of the actual
judgment date.
In reality it could be soon.
Avoid delay, act today

For this reason we urge anyone who is contemplating refinancing their
current home and investment loans into a Wealth Optimiser loan structure,
if and when we win, to seriously consider preparing now. If the 20,000
borrowers in our existing Wealth Optimiser enquiry data base who have
indicated that they will refinance if we win, decide to refinance all at
once delays will be inevitable. To avoid delay we urge those intending to
refinance to complete and lodge an application now.

Its simple. You can submit an application now with no fees. We will process
the application and provide you with a conditional letter of offer subject
to valuation and any other information we may require. If we win you simply
sign the letter of offer’s acceptance page, confirm there has been no
material change in your circumstances, and return the acceptance with the
establishment fee. All we then have to do is value the security properties
and instruct solicitors.

But that’s not all.

For all loan applications lodged prior to judgment day, which are lodged
subject to a favourable judgement, we will cap the Establishment Fee at
$750, which includes the application fee, the lender’s legal fee and
valuation fees for up to three security properties. Our normal
Establishment Fee is $750 for a loan with one security property plus $400
for each additional security property, to cover the additional valuation
and legals. Take advantage of the saving and avoid delay.

Application form pdf files are attached or ring 02 9299 1833 to have one
faxed or posted to you.

(See attached file: AustralLoanAppForm.pdf)(See attached file:
PrivacyActAMCPermCust.pdf)(See attached file: UCCC.New.pdf)I did not attach the file if you would want to read them I can send them to you.

Could you give me your thoughts on this type of loan.
The idea is to pay off your own home by capitalising the interest on the investment home, then paying off the investment home/s

Many thanks
John C. Lederhose