James runs manufacturing business. In the current year he paid $1080 to a bank in connection with a loan to buy new manufacturing plant. The loan was for 6 years commencing on 1 November of the current income year.

James can claim a deduction of in the current financial year. Please complete the blank with just the figure without any dollar signs.

State how your answer would differ if the loan had commenced on 1 November of the previous financial year