We have some balance on home loan offset, I am wondering if we invest the amount into managed funds, are the interests (from the offset) tax deductible ?
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Hi @johnjohn
If you're asking about savings that are sitting in an offset account attached to your owner-occupied home loan, then the answer is no. Like a regular transaction or savings account, your money is still accessible in the offset account. But if you make a withdrawal, you’ll have less money working to lower the interest charged on your home loan.
Therefore, having an offset account is like withdrawing savings from a separate account. This in effect will increase the interest you owe on your home loan which is considered personal use and not investment related.
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Hi @johnjohn
If you're asking about savings that are sitting in an offset account attached to your owner-occupied home loan, then the answer is no. Like a regular transaction or savings account, your money is still accessible in the offset account. But if you make a withdrawal, you’ll have less money working to lower the interest charged on your home loan.
Therefore, having an offset account is like withdrawing savings from a separate account. This in effect will increase the interest you owe on your home loan which is considered personal use and not investment related.
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