Kiwibank Limited

The arrangement is a product Kiwibank offers to its customers. The product is marketed as the Kiwibank Offset Mortgage (the Product). The Product allows a customer to elect that interest payable by the customer on a loan made by Kiwibank should be calculated by offsetting the balance of the loan against the aggregate credit balances of certain eligible nominated bank accounts (hereafter referred to as credit accounts) held by either that customer or certain other eligible persons. Interest is payable on the net notional balance of these combined accounts.

This ruling does not consider the tax consequences of any arrangement under which a credit account holder agrees to offset his or her credit account balance against another person’s home loan account balance in return for valuable consideration.