Hybrid Trusts and Interest Deductibility

The ATO has recently issued a new draft tax determination on Hybrid Trusts:

Draft Taxation Determination TD 2008/D16
Income tax: is interest on a loan fully deductible under section 8-1 of the Income Tax Assessment Act 1997 when the borrowed moneys are settled by the borrower on trust to benefit the borrower and others?

available at http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~2008%2Fd16~basic~exact&target=FA&style=html&sdocid=DXT/TD2008D16/NAT/ATO/00001&recStart=1&PiT=99991231235958&recnum=1&tot=1&pn=ALL:::ALL

Cleardocs has an article about it here
http://www.cleardocs.com/clearlaw/tax/unit-trusts-loans-expenses-deductibility.html

and another related one here:
http://www.cleardocs.com/clearlaw/tax/uncommercial-use-hybrid-trusts.html